Reference: 05-13
Bressler Corporation Uses Activity-Based Costing to Determine Product

question 46

Multiple Choice

Reference: 05-13
Bressler Corporation uses activity-based costing to determine product costs for external financial reports. Activity rates computed at the beginning of the year are used to apply manufacturing overhead costs to products. The company has provided the following data concerning its activity-based costing system.
The data used to develop activity rates were: $$\begin{array} { | l | l | l | l | } \hline \text { Activity Cost Pools } & \begin{array} { l } \text { Estimated } \\\text { Overhead Cost }\end{array} & { \text { Expected Activity } } \\\hline \text { Machine related (machine-hours) } & \$ 332,800 & 16,000 & \mathrm { MHs } \\\hline \text { Batch setup (setups) } & \$ 1,580,500 & 29,000 & \text { setups } \\\hline \begin{array} { l } \text { General factory (direct } \\\text { labour-hours) }\end{array} & \$ 305,600 & 16,000 & \text { DLHs } \\\hline \begin{array} { l } \text { The actual activity for the year } \\\text { was: }\end{array} & & & \\\hline & & \text { Actual Activity for the Year } \\\hline \text { Activity Cost Pools } & \text { Total } & \text { Product X } & \text { Product } Y \\\hline \text { Machine related (machine-hours) } & 15,000 & 7,000 & 8,000 \\\hline \text { Batch setup (setups) } & 30,000 & 22,000 & 8,000 \\\hline \begin{array} { l } \text { General factory (direct } \\\text { labour-hours) }\end{array} & 15,000 & 12,000 & 3,000 \\\hline\end{array}$$ The actual total manufacturing overhead cost incurred for the year was $2,202,600.
-The credits to the Manufacturing Overhead control account during the year (prior t? closing out the balance) would have totalled:

• A)$2,233,500.
• B)$2,249,700.
• C)$2,202,600.
• D)$2,218,050.

---

Definitions:

Information-Processing Theorists

Scholars who study how human beings process information, including how they perceive, analyze, store, and recall information.

Sensory Register

The component of memory that receives and holds input from the sensory systems for a very short period of time, allowing the brain to process and respond to this information.

Information-Processing Theorists

Psychologists who study how human beings process information, considering the mind as a computer where information comes in, is processed, and leads to certain outcomes.

Inaccurate Testimony

False or incorrect evidence presented by a witness during legal proceedings.