Random House Uses Activity-Based Costing How Much Are Total Overhead Costs to Be Charged to Hardcover

question 31

Multiple Choice

Random House uses activity-based costing. The company produces soft and hardcover books. The estimated costs and expected activity for each of the overhead activity pools follow: $\begin{array}{lllrl}\text { Activity } & \text { Estimated } &\text { Expected Activity }\\\text { Cost Pool } & \text { Cost }&(\text { Hard-Cover }&\text { Soft-Cover }&\text { Total }\\\hline\text { Activity } 1 & \$ 15,000 & 800 & 700 & 1,500 \\\text { Activity 2 } & \$ 14,900 & 500 & 1,500 & 2,000 \\\text { Activity 3 } & \$ 27,600 & 800 & 400 & 1,200\end{array}$ How much are total overhead costs to be charged to hardcover books?

• A) $30,125
• B) $8,000
• C) $84,945
• D) $25,691

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