ABC Manufacturing allocates its factory overhead costs based on machine hours. The total estimated overhead cost for the year is 6,00,000, and the…
CA Intermediate · Cost and Management Accounting · MTP · September 2024
ABC Manufacturing allocates its factory overhead costs based on machine hours. The total estimated overhead cost for the year is 6,00,000, and the company expects to use 30,000 machine hours. During the year, job A used 300 machine hours. What amount of overhead costs should be allocated to this job?
Suggested Answer and Working Notes:
Correct Answer: Option (B)
₹ 6,000
Topics: Activity Based Costing, Overheads - Absorption Costing Method
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