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

question 89

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: $\begin{array}{lllrr}\text { Activity } & \text { Estimated } & \text { Expected }&\text { Activity } \\\text { Cost Pool } & \text { Cost } & \text { Hard-Cover }&\text { Soft-Cover }&\text { Total } \\\hline\text { Activity } 1 & \$ 15,000 & 800 & 700 & 1,500 \\\text { Activity } 2 & \$ 14,900 & 500 & 1,500 & 2,000 \\\text { Activity } 3 & \$ 27,600 & 800 & 400 & 1,200\end{array}$ 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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Definitions:

Intramuscular

Referring to an injection given directly into the muscle.

Abbreviation

The shortened form of a word or phrase used to save space or avoid repetition.

LOM

Limitation of Motion, a term used to describe the restricted movement of a limb or joint.

Analgesic

A category of drugs used to achieve pain relief; also known as painkillers.