Question: Jackal Security Inc. provides security guards to shopping malls. Data related to Jackals overhead costs for the current year are as follows: Head Office Activity

  1. Jackal Security Inc. provides security guards to shopping malls. Data related to Jackals overhead costs for the current year are as follows:

Head Office Activity

Total Overhead Cost

Cost Driver

Estimated activity

Supervision

$128,000

# of employees

80

Technology fees

58,000

computer hours

2,000

Rent/Utility/Taxes

42,000

direct labour hours

160,000

Total

$228,000

During the year, Jackal provided security to the Apple Creek Mall including five employees, 150 computer hours and 10,800 labour hours. Overhead applied to the Apple Creek Mall job for the year using ABC is

  1. $1,629.26
  2. $15,185.00
  3. $15,390.00
  4. $17,100.00.

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