Question: Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: The accounting records show the

Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:

The accounting records show the Mossman Job consumed the following resources:

If Gregory Enterprises uses a simple cost system based on direct labour hours then what amount of indirect costs will be allocated to the Mossman job?

What is the activity rate for machine maintenance costs?

Overhead Activity level Cost Pool Costs Cost driver Supervision of direct labor Direct labor- S320,000 hours 800,000 Machine maintenance $120,000 Machine-hours 960,000 Square feet of Facility rent S200,000 100,000 area Total overhead costs S640,000

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