Doede Corporation Uses Activity-Based Costing to Compute Product Margins

question 152

Multiple Choice

Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts--equipment depreciation and supervisory expense--to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Distribution of Resource Consumption Across Activity Cost Pools:
In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products.
Activity:
Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.
Sales and Direct Cost Data:
How much overhead cost is allocated to the Machining activity cost pool under activity-based costing in the first stage of allocation?

• A) $56,400
• B) $20,400
• C) $55,200
• D) $1,200

---

Definitions:

Childhood Eating Habits

Patterns and preferences of food consumption established during childhood, significantly impacting nutritional health and development.

Nutritional Intake

The total amount of food substances consumed that provide nutritional support for an organism.

Lifespan Perspective

The study of human development from birth to death, emphasizing growth and changes at every stage of life.

Human Development

The multidisciplinary study of how people grow and change physically, cognitively, and socially throughout their lifespan.