Using Activity-Based Costing to Allocate Overhead Costs, What Is the Total

question 66

Multiple Choice

Using activity-based costing to allocate overhead costs, what is the total manufacturing overhead cost estimate for Hapless Systems during 2016?

• A) $3,113.75
• B) $1,495.00
• C) $2,068.00
• D) $3,412.50

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Definitions:

Amortization

The process of spreading the cost of an intangible asset over its useful life, recognizing a portion of the expense each accounting period.

Intangible Assets

Non-physical assets owned by a business that have value, such as intellectual property, brand recognition, and goodwill.

Discarding

The act of getting rid of something that is no longer useful or desired, within a context like inventory management or manufacturing.

Fixed Assets

Permanent tangible properties engaged in business operations, which are unlikely to be used up or exchanged for cash in the span of a year.