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 $75 per machine hour. The cost accourmani for the Finishing Departemen following data
Activity
Cost Drivers
Rate
Material handling
Tons of material handled
$ 95
Machine setups
Number of production runs
3,950
Utilities
Machine-hours
35
Quality control
Number of inspections
500
During April, Mega purchased and used $110,000 of direct materials at $20 per ton. There were 8 production runs using a total of 10,000 machine-hours in April. The manager of the Finishing Department needed 12 inspections. Actuul overhead cosas totaled $885,000 in the month
How much overhead costs were applied to the Work-in-Process Inventory during April using traditional costing?
Multiple Choice
$695,100
$750,000
$910,500
$885,000