Wedd Corporation Uses Activity-Based Costing to Assign Overhead Costs to Products

question 33

Multiple Choice

Wedd Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $27,200; Supervising, $9,300; and Other, $9,500. Processing 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 appear below: What is the overhead cost assigned to Product O6 under activity-based costing?

• A) $2,325
• B) $23,000
• C) $14,837
• D) $12,512

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Definitions:

Equity

The principle of fairness or justice in the way people are treated, often referring to the distribution of resources or opportunities.

Status

The social ranking of a person’s position.

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A theoretical framework in sociology that emphasizes the role of symbols and language as core elements of all human interaction.

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