Answer the Following Questions Using the Information Below:
Dandenong Enterprises

question 90

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:
$$\begin{array}{l}\begin{array} { l r l r } \text { Cost Pool } & \text { Overhead Costs } & \text { Cost Driver } & \text { Activity level } \\\text { Supervision of direct labour } & \$ 320000 & \text { Direct labour-hours } & 800000 \\\text { Machine maintenance } & \$ 120000 & \text { Machine-hours } & 960000 \\\text { Facility rent } & \$ 200000 & \text { Square metres of area } & 100000 \\\text { Total overhead costs } & \$ 640000 & &\end{array}\\\\\text { The accounting records show the Leongatha job consumed the following resources: }\\\\\begin{array} { l c } \text { Cost Driver } & \text { Actual Level } \\\text { Direct labour-hours } & 300 \\\text { Machine-hours } & 2400 \\\text { Square metres of area } & 75\end{array}\end{array}$$
-Using the three cost pools to allocate overhead costs,what is the total amount of overhead costs to be allocated to the Leongatha job?

• A)$170
• B)$570
• C)$675
• D)$200

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