Question

Estimated costs for activity cost pools and other item(s) are as follows: Machining $500000 Assembling 200000 Advertising 450000 Inspecting and testing 175000 Total estimated overhead isA. $875000. B. $1150000. C. $1325000. D. $700000.

Answer 1

Answer:

A) $875000

Explanation:

total estimated manufacturing overhead costs = machining costs + assembling costs + inspecting and testing costs = $500,000 + $200,000 + $175,000 = $875,000

Advertising costs ($450,000) are included under sales and administrative costs, not production costs.