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Deprecated Deprecated
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Posts: 2784
7 years ago
Vincent Jardine, a CPA, has a firm in the state of New York. Vincent uses ABC to allocate overhead costs and has computed the following predetermined overhead allocation rates:

Activity   Allocation Base   Allocation Rate   
Photocopy expenses   Number of pages   $0.75   per page
Cost of maintenance   Number of labor hours   $10.00   per hour

Vincent has important contacts in the northeastern parts of New York. During the past month, Vincent completed a job for Nurix, Inc. The job required 135 labor hours and 4,000 photocopies. Determine the amount of indirect costs to be allocated to the job.
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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wrote...
Educator
7 years ago
Activity    Predetermined Overhead Allocation Rate   ×   Actual Quantity of the Allocation Base   =    Allocated Overhead Cost
Photocopy expenses   $0.75 per page   ×   4,000 pages   =    $3,000
Cost of Maintenance   $10.00 per labor hour   ×   135 labor hours   =      1,350
Total                $4,350
Deprecated Author
wrote...
7 years ago
This was certainly a tough question, loving the expertise
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