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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Definitions:

Gun-Free School Zone Act

Federal legislation in the United States that prohibits the unauthorized possession of firearms in designated school zones.

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate trade between states, with foreign nations, and among Indian tribes.

Congress

The bicameral legislature of the United States, consisting of the House of Representatives and the Senate, responsible for making federal laws.

Constitutionality

The quality or condition of being in accordance with the constitution, often referring to laws or actions being tested for compliance with the constitutional framework.