Answer the Following Questions Using the Information Below:
Nile Corp

question 61

Multiple Choice

Answer the following questions using the information below:
Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
$$\begin{array} { l r l r } \text { Cost Pool } & \text { Overhead Costs } & \text { Cost driver } & \text { Activity level } \\\text { Supervision of direct labor } & \$ 380,000 & \text { Direct labor-hours } & 760,000 \\\text { Machine maintenance } & \$ 120,000 & \text { Machine-hours } & 960,000 \\\text { Facility rent } & \$ 200,000 & \text { Square feet of area } & 125,000 \\\text { Total overhead costs } & \$ 640,000 & &\end{array}$$ The accounting records show the Mossman Job consumed the following resources:
$\begin{array}{ll}\text { Cost driver } & \text { Actual level } \\\text { Direct labor-hours } & 200 \\\text { Machine-hours } & 1,600 \\\text { Square feet of area } & 50\end{array}$
-Using the three cost pools to allocate overhead costs,what is the total amount of overhead costs to be allocated to the Mossman Job?

• A) $389.00
• B) $380.00
• C) $385.50
• D) $376.00

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