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?

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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 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