Addleman Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:Overhead costs: Equipment expense$73,000Indirect labor$1,000??Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools ProcessingSupervisingOtherEquipment expense0.200.100.70Indirect labor0.200.200.60Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to
products. Activity data for the company's two products follow:Activity: MHs (Processing)Batches (Supervising)Product W37,600100Product H32,400900Total10,0001,000Finally, the costs of Processing and Supervising are combined with the following sales and direct cost data to determine product margins.Sales and Direct Cost Data: Product W3Product H3Sales (total)$159,500$154,100Direct materials (total)$66,300$55,300Direct labor (total)$77,800$84,100What is the product margin for Product H3 under activity-based costing?
A. $36,300
B. $4,398
C. $10,548
D. $14,700
Answer: B
You might also like to view...
Which of the following is not a special concern for international research during report preparation and presentation?
A) the need to prepare reports for management in different countries and in different languages B) the presenter should be sensitive to cultural norms C) the subjective experience and gut feelings of managers could vary widely across countries, necessitating that different recommendations be made for implementing the research findings in different countries D) whether clients should use the research results in an ethical manner
What is the best nonverbal selling technique?
What will be an ideal response?
Which of the following approaches to behavioral strategic control would be the least appropriate for an organization in which there is a great need for innovation and a high degree of autonomy?
A. rules B. culture C. rewards D. incentives
A plaintiff who has succeeded in obtaining a judgment against a defendant has no means to get the money they are owed if the defendant refuses to pay the judgment
Indicate whether the statement is true or false