Lynx Corporation has a plantwide overhead rate of $20 per ma…
Lynx Corporation has a plantwide overhead rate of $20 per machine hour. Lynx’s accountant has recommended that the company implement an ABC system that breaks its total overhead of $400,000 into two cost pools. The first cost pool is called “Operating Machinery” and is allocated to products using machine hours as an allocation base. The second cost pool is called “Other Overhead” and is allocated to products using direct labor hours as an allocation base. Lynx produces several products. One product, called the widget, consumed two machine hours and is assigned a total of $10 of overhead from the ABC cost pool called Operating Machinery. What is the total amount of overhead costs included in the Operating Machinery cost pool?