Question

Kenneth Company uses activity-based costing. It budgets $1,650,000 of overhead cost to sustainably dispose of 6,600 tons of hazardous waste. The company disposed of 10 tons of hazardous waste in completing Job 125. Allocate overhead cost to the hazardous waste disposal as part of Job 125 using activity-based costing. Multiple Choice $2,500 $2,750 $3,000 $3,250 $3,500

Answer 1

The cost of hazardous waste disposal as part of Job 125 using activity-based costs is $2,500.

$1,650,000 / 6,600 tons = $250/tonHazardous waste disposal = 10 tons × $250 per ton = $2,500

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