Deemer Corporation Has an Activity-Based Costing System with Three Activity

question 166

Multiple Choice

Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Distribution of Resource Consumption Across Activity Cost Pools:
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 for the company's two products follow:
Activity:
How much overhead cost is allocated to the Supervising activity cost pool under activity-based costing?

• A) $15,800
• B) $1,200
• C) $17,000
• D) $14,600

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Definitions:

Shoulder

A complex structure made up of several joints that combine with tendons and muscles to allow a wide range of motion to the arm.

Calcaneus

The largest bone in the foot, forming the heel and serving as a foundation for the rear part of the foot.

Lateral Collateral Ligament

A ligament located on the outer side of the knee, contributing to the joint's stability by preventing lateral (sideways) movement.

Cruciate Ligaments

Major ligaments in the knee that cross each other, crucial for stabilizing the knee joint during movement.