How Much Overhead Cost Is Allocated to the Order Filling

question 81

Multiple Choice

How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

• A)$400
• B)$4,700
• C)$14,700
• D)$5,100

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Definitions:

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate product cost.

Overhead Cost Allocation

The process of distributing indirect costs to various cost objects like products, projects, or departments.

Activity-based Costing

A method in costing that allocates overhead and indirect costs to specific activities, providing a more accurate representation of the cost to produce a product or service.

ABC Costing

Activity-based costing; a method of allocating overhead and direct costs to specific products or activities based on actual consumption.