Save Question 6 1 point E The drying and cool down process r

Save Question 6 (1 point) E The drying and cool down process represents 25% of the total costs of all set ups associated with all activities. Using an activity-based cost system, how much is attributed to the drying and cool down process for steel sheeting if overhead is $4,000? O SO since all of the overhead cost is typically allocated well before the end of production $4,000 since all of the overhead should be allocated to the last activity due to proper use of ABC $1,000 based on the cost associated with all set-ups Cannot be determined from the above information Save Question 7 (1 point) B Managerial accounting

Solution

Option C is Correct.

The overhead costs associated with each activity are assigned to that activity in ABC costing.

When overhead is $4000, relavant activity of drying and cool down process occupies 25%

Therefore the activity is attributed $1000 ($4000*25%)