Hurst Productions Uses Activity-Based Costing How Much Pressing Cost Will Be Assigned to Monthly Magazines

question 133

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 pressing cost will be assigned to monthly magazines?

• A) $24.60
• B) $9,840
• C) $61.50
• D) None of these answer choices are correct.

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