Answer:
Total overhead = $50,000
Explanation:
Activity based costing is a method of allocating production cost to various activities, from example to accounting, sales, operations and son on. A given standard amount is multiplied by the units of an activity.
In this instance the overhead includes machine setup, factory maintenance, heating and lighting.
Total overhead= machine setup + factory maintenance + heating and lighting
Total overhead= 25,000+ 10,000+ 15,000
Total overhead = $50,000
Sales expense is a direct expense so is not included.
