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Marpole Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: (Click the icon to view the estimates of the cost pools.) The accounting records show the Bossman job consumed the following resources: (Click the icon to view the resources consumed for the Bossman job.) When selling prices are based on costs assigned using the single cost driver, direct labour hours, then the Bossman job Cost Driver Direct labour hours Machine hours Square metres of area O A. will contribute too little to profits, and Gregory Enterprises will not want to accept additional work from the company OB. is grossly underbilled for the job, while other jobs will be unfairly overbilled OC. will likely seek to do business with competitors OD. may increase overall sales as other jobs will be cross-subsidized O E. is fairly billed because resources are allocated uniformly to all jobs Overhead Costs $340,000 $170,000 $210,000 $720,000 Activity Level 600,000 1,440,000 100,000 Resources Consumed Cost Driver Direct labour-hours Machine-hours Square metres of area Print Actual Level 150 1,700 80 Done -

Marpole Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: (Click the icon to view the estimates of the cost pools.) The accounting records show the Bossman job consumed the following resources: (Click the icon to view the resources consumed for the Bossman job.) When selling prices are based on costs assigned using the single cost driver, direct labour hours, then the Bossman job A. will contribute too little to profits, and Gregory Enterprises will not want to accept additional work from the company B. is grossly underbilled for the job, while other jobs will be unfairly overbilled C. will likely seek to do business with competitors D. may increase overall sales as other jobs will be cross-subsidized E. is fairly billed because resources are allocated uniformly to all jobs Estimates of Cost Pools Resources Consumed stion list K uestion 16 uestion 17 uestion 18 uestion 19 uestion 20 Marpole Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: (Click the icon to view the estimates of the cost pools.) The accounting records show the Bossman job consumed the following resources: (Click the icon to view the resources consumed for the Bossman job.) When selling prices are based on costs assigned using the single cost driver, direct labour hours, then the Bossman job A. will contribute too little to profits, and Gregory Enterprises will not want to accept additional work from the company B. is grossly underbilled for the job, while other jobs will be unfairly overbilled C. will likely seek to do business with competitors D. may increase overall sales as other jobs will be cross-subsidized E. is fairly billed because resources are allocated uniformly to all jobs Estimates of Cost Pools Resources Consumed

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