Reference: 05-09
Aujla Corporation Uses Activity-Based Costing to Determine Product

question 23

Multiple Choice

Reference: 05-09
Aujla Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: $$\begin{array} { | l | l | } \hline \text { Activity Cost Pools (and Activity Measures) } & \text { Estimated Overhead Cost } \\\hline \text { Machine related (machine-hours) } & \$ 239,000 \\\hline \text { Batch setup (setups) } & \$ 234,900 \\\hline \text { General factory (direct labour-hours) } & \$ 159,300 \\\hline\end{array}$$ $\text { Expected Activity }$
$\begin{array}{llll}\text { Activity Cost } & \text { Total } & \text { Product } X & \text { Product } Y\\\text { Pools }\\\text { Machine related } & 10,000 & 4,000 & 6,000 \\\text { Batch setup } & 9,000 & 8,000 & 1,000 \\\text { General factory } & 9,000 & 3,000 & 6,000\end{array}$
-Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to:

• A)$357,500.
• B)$235,000.
• C)$316,600.
• D)$563,000.

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Definitions:

Communication Style

The manners and methods used by individuals to convey their needs, ideas, or feelings to others, including verbal, non-verbal, written, and digital forms.

Population Percent

The percentage representation of a specific group within the total population.

Visual

Pertaining to the sense of sight or relating to vision, often used to describe things that can be perceived with the eyes.

Communication Style

The unique manner in which a person communicates messages to others through both speech and body language.