Hurst Productions Uses Activity-Based Costing How Much Are the Total Costs to Be Allocated to Monthly

question 129

Multiple Choice

Hurst Productions uses activity-based costing. The company produces weekly and monthly magazines. The estimated costs and expected activity for each of the activity pools follow:
$\begin{array}{|l|c|c|c|c|}\hline &&\text { Expected Activity }\\\hline \text { Cost Pool } & \text { Estimated Cost } & \text { Weekly } & \text { Monthly } & \text { Total } \\\hline \text { Pressing } & \$ 24,600 & 600 & 400 & 1,000 \\\hline \text { Printing } & 6,250 & 400 & 100 & 500 \\\hline \text { Binding } & 9,000 & 800 & 1,200 & 2,000 \\\hline\end{array}$
How much are the total costs to be allocated to monthly magazines?

• A) $16,490
• B) $41.60
• C) $131.50
• D) None of these answer choices are correct.

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Definitions:

Market Supply Curve

The market supply curve graphically represents the relationship between the total quantity of a good that producers are willing to supply and the price of the good.

Market Wage Rate

The prevailing pay rate for work of a similar nature in a specific industry or geographic area.

Product Market

A marketplace where final goods or services are offered to consumers, businesses, and the public sector.

Monopsonist

A monopsonist is a market condition where there is only one buyer for a product or service, giving them significant power over prices.