Longview Manufacturing Company Manufactures Two Products (I and II) Using Functional-Based Costing, What Is the Amount of Overhead Cost

question 30

Multiple Choice

Longview Manufacturing Company manufactures two products (I and II) . The overhead costs ($58,000) have been divided into three cost pools that use the following activity drivers: $\begin{array}{lccc} &&\text { Number of Labor }\\\text { Product } & \text {Number of Orders } & \text { Transactions } &\text { Labor Hours }\\\hline I& 15 & 50 & 500 \\II & 10&150&2,000 \\\text { Cost per pool } & \$ 12,500 & \$ 8,000 & \$ 40,000\end{array}$ Using functional-based costing, what is the amount of overhead cost to be assigned to Product II using labor hours as the allocation base?

• A)$58,000
• B)$43,500
• C)$11,600
• D)$46,400

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