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Answer the Following Questions Using the Information Below:
Dandenong Enterprises

question 93

Multiple Choice

Answer the following questions using the information below:
Dandenong Enterprises has identified three cost pools to allocate overhead costs.The following estimates are provided for the coming year:
 Cost Pool  Overhead Costs  Cost Driver  Activity level  Supervision of direct labour $320000 Direct labour-hours 800000 Machine maintenance $120000 Machine-hours 960000 Facility rent $200000 Square metres of area 100000 Total overhead costs $640000 The accounting records show the Leongatha job consumed the following resources:  Cost Driver  Actual Level  Direct labour-hours 300 Machine-hours 2400 Square metres of area 75\begin{array}{l}\begin{array} { l r l r } \text { Cost Pool } & \text { Overhead Costs } & \text { Cost Driver } & \text { Activity level } \\\text { Supervision of direct labour } & \$ 320000 & \text { Direct labour-hours } & 800000 \\\text { Machine maintenance } & \$ 120000 & \text { Machine-hours } & 960000 \\\text { Facility rent } & \$ 200000 & \text { Square metres of area } & 100000 \\\text { Total overhead costs } & \$ 640000 & &\end{array}\\\\\text { The accounting records show the Leongatha job consumed the following resources: }\\\\\begin{array} { l c } \text { Cost Driver } & \text { Actual Level } \\\text { Direct labour-hours } & 300 \\\text { Machine-hours } & 2400 \\\text { Square metres of area } & 75\end{array}\end{array}
-Using direct labour-hours as the only overhead cost driver,what is the amount of overhead costs allocated to the Leongatha job?


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