Business, 06.08.2019 18:20 thelonewolf5020

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 $60 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 $ 80 machine setups number of production runs 3,850 utilities machine hours 25 quality control number of inspections $ 400 during april, mega purchased and used $100,000 of direct materials at $20 per ton. there were eight (8) production runs using a total of 12,000 machine hours in april. the manager of the finishing department needed 12 inspections. actual overhead costs totaled $875,000 for the month. how much overhead costs were applied to the work-in-process inventory during april using traditional costing?

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