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

question 172

Multiple Choice

Reck 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, $11,700; Order Filling, $17,800; and Other, $13,500. 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 V8 under activity-based costing?

• A) $14,240
• B) $3,627
• C) $17,867
• D) $21,500

---

Definitions:

Bonuses

Additional compensation given to employees as a reward for their performance, often based on achieving certain targets or goals.

Stock Exchange

A marketplace where securities, such as stocks and bonds, are bought and sold.

TSX

The TSX refers to the Toronto Stock Exchange, a major global exchange located in Canada, primarily featuring Canadian-based companies.

Listing Requirements

Listing requirements are the criteria established by stock exchanges that companies must meet to be listed and continue trading on the exchange.