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:

Expected Value

The anticipated value or average outcome of a random variable, taking into account all possible outcomes weighted by their probabilities.

Probabilities

A measure expressing the likelihood of occurrence of a given event, typically defined on a scale from 0 to 1, where 0 means the event cannot occur and 1 indicates certainty.

Expected Value

A statistical concept that calculates the weighted average of all possible values for a random variable.

Probabilities

A numerical assessment ranging from 0 to 1 that quantifies how likely an event is to take place.