Business, 13.03.2020 18:15, galaxyomg661p0edpt

The Mega Construction Company recently switched to activity-based costing (ABC) from the department allocation method. The department method allocated overhead costs at a rate of $40 per machine hour. The cost accountant for the Finishing Department has gathered the following data: Activity Cost Drivers Amount Material handling Tons of material handled $ 60 Machine setups Number of production runs 3,500 Utilities Machine hours 25 Quality control Number of inspections $ 500 During April, Mega purchased and used $125,000 of direct materials at $25 per ton. There were eight (8) production runs using a total of 11,000 machine hours in April. The manager of the Finishing Department needed 12 inspections. Actual overhead costs totaled $900,000 for the month. How much overhead costs were applied to the Work-in-Process Inventory during April using traditional costing

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The Mega Construction Company recently switched to activity-based costing (ABC) from the department...