Question

One of Matheny Company’s activity cost pools is inspecting, with estimated overhead of $280000. Matheny produces throw rugs (700 inspections) and area rugs (1300 inspections). How much of the inspecting cost pool should be assigned to throw rugs?

A. $150769.

B. $280000.

C. $140000.

D. $98000.

Answer 1

Option D) $ 98,000
Inspecting cost assigned to throw rugs	$              98,000
Estimated overhead	$          2,80,000
Total Production (700+1300)	$                2,000
inspecting cost	$                    140
Inspecting cost assigned to throw rugs	$              98,000
(140*700)