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:

Bramante

Donato Bramante, an Italian architect who introduced Renaissance architecture to Milan and the High Renaissance style to Rome, with St. Peter’s Basilica being among his most famed works.

Saint Peter's

A renowned basilica in Vatican City, serving as one of the most significant sites of Catholic worship and pilgrimage, notable for its grand architecture.

Dome

An architectural element that resembles the upper half of a sphere, often used to cover a large space.

Tempietto

A small Renaissance temple in Rome, designed by Donato Bramante, considered a masterpiece of High Renaissance architecture.