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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