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Johnson company has the following overhead costs: machine setup $25,000; factory services $10,000; design of $15,000; and selling expenses of $5,000. What is the total overhead costs using activity-based costing?.

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ayokenny2001

The total overhead costs using activity-based costing is $50,000

What is total overhead cost?

Overhead costs are indirect expenses incurred in a business. They are meant to support a business but are not directly related to production.

Total overhead cost

= Machine setup + Factory maintenance + Heating and lighting

= 25,000+ 10,000+ 15,000

= $50,000

Hence, the total overhead costs using activity-based costing is $50,000

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