Bachrodt Corporation Uses Activity-Based Costing to Compute Product Margins

question 22

Multiple Choice

Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: 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
Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.
What is the product margin for Product Y7 under activity-based costing?

• A) -$3,800
• B) $4,728
• C) $14,200
• D) $6,208

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Definitions:

Chronic Illness

A long-standing, persistent health condition that often requires ongoing medical attention or management.

Daily Activities

Routine tasks and behaviors performed by individuals on a daily basis, essential for personal care and living.

Psychosocial

Referring to the interrelation of social factors and individual thought and behavior, highlighting how social environments influence psychological development.

Risk Factors

are characteristics or conditions that increase the likelihood of developing a disease or injury.