Heedy Winery Accumulates the Costs Incurred in the Labeling Process

question 85

Multiple Choice

Heedy Winery accumulates the costs incurred in the labeling process in an activity cost pool.Costs for the labeling process are estimated to be $320,000, and the winery expects to generate 640,000 labels for the coming year.Production for its top-selling wine is estimated at 160,000 bottles.How much overhead from the labeling process will be allocated to this particular variety of wine?

• A) $40,000
• B) $80,000
• C) $160,000
• D) $320,000

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