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

question 73

Multiple Choice

Dercole 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: Machining, $43,200; Order Filling, $13,900; and Other, $14,900. 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 data appear below: What is the overhead cost assigned to Product N8 under activity-based costing?

• A) $4,170
• B) $31,536
• C) $35,706
• D) $36,000

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Definitions:

Milliliters

A unit of volume in the metric system, equivalent to one thousandth of a liter.

Centimeters

A unit of length in the metric system equal to one hundredth of a meter, commonly used to measure small distances.

Copper Penny

A coin made primarily of copper, often used colloquially to refer to one cent coins in the United States and other countries.

Centimeters

In the metric system, a length measurement that is exactly one percent of a meter.