A Company Has Identified the Following Overhead Costs and Cost

question 11

Multiple Choice

A company has identified the following overhead costs and cost drivers for the coming year: (CIA adapted) Budgeted direct labor cost was $100,000 and budgeted direct material cost was $280,000.The following information was collected on three jobs that were completed during the year: If the company uses activity-based costing (ABC) ,how much overhead cost should be assigned to Job 103?

• A)$1,300.
• B)$2,000.
• C)$5,000.
• D)$5,600.

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Definitions:

Geographical Structure

An organizational structure where operations are divided based on geographical regions, facilitating focus on local markets or resources.

Local Tastes

Preferences and inclinations specific to people in a certain geographical area, often influencing the products and services offered in that region.

Fast Food Organization

An organizational structure optimized for speed and efficiency, often utilized by businesses in the fast food industry to quickly serve customers.

Product Structure

The organization of a company’s product lines or portfolio, detailing how products are interrelated or grouped.