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:

Ovulation

Bursting of a follicle when a secondary oocyte is released from the ovary; if fertilization occurs, the secondary oocyte becomes an egg.

28-Day

Often associated with a full cycle of the moon or a typical menstrual cycle length, marked by changes or events occurring every 28 days.

Corpus Luteum

A temporary endocrine structure in female ovaries that secretes progesterone after ovulation.

Ruptured Follicle

A follicle that releases its egg during ovulation, sometimes referred to as ovulation itself.