Question

A company using activity-based costing has the following overhead activities and costs: factory maintenance $50,000; machine setup $100,000; heating and lighting $25,000; and machine repair $10,000. Total costs in the plant services activity are .____________.

Answer 1

Answer:

$75,000

Explanation:

Given that,

Factory maintenance = $50,000;

Machine setup = $100,000;

Heating and lighting = $25,000

Machine repair = $10,000

Therefore,

Total costs are as follows:

= Factory maintenance + Heating and lighting

= $50,000 + $25,000

= $75,000

Therefore, the total costs in the plant services activity are $75,000.