Miramar Industries Manufactures Two Products: a and B

question 123

Multiple Choice

Miramar Industries manufactures two products: A and B.  The manufacturing operation involves three overhead activities-production setup, material handling, and general factory activities.  Miramar uses activity-based costing to allocate overhead to products.  An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities: What is the toal overhead allocated to Product B using activity-based costing?

• A) $135,000
• B) $175,000
• C) $292,500
• D) $285,500

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