Question: Activity Based Costing The overhead cost is now being allocated based on the following table below: Category Plant and Equipment Management Purchasing Sales and Shipping

Activity Based Costing

The overhead cost is now being allocated based on the following table below:

Category

Plant and Equipment

Management

Purchasing

Sales and Shipping

Total Cost

$700.00

$2,200.00

$600.00

$1,500.00

Cost Allocation

Square feet

Labor hours

Purchase orders

Customer orders

Total units used

10000

2400

130

91

Product A

1000

500

10

5

Product B

2000

450

35

20

Product C

3000

690

60

41

Product D

4000

760

25

25

Determine the following based on the original production plan (product A -700, B-350, C-80 and D-42):

  1. Total allocated overhead cost?

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