Deemer 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$6,000??Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools ProcessingSupervisingOtherEquipment expense0.600.200.20Indirect labor0.400.200.40Processing 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 F61,000600Product X09,000400Total10,0001,000How much overhead cost is allocated to the Supervising activity cost pool under activity-based costing?
A. $17,000
B. $14,600
C. $15,800
D. $1,200
Answer: C
You might also like to view...
Juan is trying to decide which factor to focus on when it comes to the outcome variables of organizational behavior. Out of the four types of outcome variables listed, which one is most important to improve his organization’s productivity?
A. work-related attitudes B. performance C. motivation D. employee withdrawal
When preparing a résumé, you should not
A) use bulleted lists for items such as job responsibilities. B) use three or four typefaces for variety. C) use lots of white space for readability. D) emphasize and subordinate points as needed.
Rita owes $6,000 in unpaid taxes. In the sand of Seaside Beach, she executes an instrument for that amount that otherwise meets the requirements for negotiability. This instrument is likely
A. negotiable. B. nonnegotiable, because an instrument must be on paper. C. nonnegotiable, because sand is not sufficiently permanent. D. nonnegotiable, because the government does not appreciate it.
A cost that contains both fixed and variable elements is referred to as a:
A. hybrid cost. B. relevant cost. C. nonvariable cost. D. mixed cost.