Question

Johnson Company has the following overhead costs: machine setup $25,000; factory maintenance $10,000; heating and lighting $15,000; and selling expenses of $5,000. What is the total overhead costs using activity-based costing?1. $35,0002. $40,0003. $25,0004. $`50,000

Answer 1

Answer:

The answer is $35000

Explanation:

Activity-based costing is a methodology for more allocating overhead costs by assigning them to activities. Manufacturing costs in this case includes factory maintenance and  heating and lighting costs.