Activity Rates from Hilliard Corporation's Activity-Based Costing System Are Listed

question 38

Multiple Choice

Activity rates from Hilliard Corporation's activity-based costing system are listed below.The company uses the activity rates to assign overhead costs to products: Last year,Product XL91 involved 2 customer orders,434 assembly hours,and 20 batches.How much overhead cost would be assigned to Product XL91 using the activity-based costing system?

• A)$1,041.80
• B)$2,000.04
• C)$66,908.88
• D)$146.73
• E)$772.52

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Definitions:

Collectibility

The likelihood that a receivable will be collected from a debtor, typically considered in revenue recognition and accounting for bad debts.

Cash Equivalent

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

Money Market

A section of the financial market where short-term funds are borrowed and lent, involving instruments like treasury bills and commercial paper.

Cash on Hand

The total amount of any accessible cash or near-cash assets, such as money in checking or savings accounts, at any given time.