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Maslowich
3 years ago
6

Franklin, Inc uses activity-based costing. The company produces X and Y. Information relating to the two products is as follows:

Business
1 answer:
zvonat [6]3 years ago
7 0

Answer:

A. $192,000

Explanation:

The computation of the labor related overhead cost is shown below:

= (Labor related overhead cost) ÷ (Total direct labor hours) × direct labor hours of X

= ($480,000) ÷ (16,000 hours + 24,000 hours) × 16,000 hours

= $192,000

hence, the correct option is A.

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