Random House Uses Activity-Based Costing How Much Are Total Overhead Costs to Be Charged to Books.The

question 89

Multiple Choice

Random House uses activity-based costing.The company produces soft and hardcover books.The estimated costs and expected activity for each of the overhead activity pools follow: $\begin{array}{lllrr}\text { Activity } & \text { Estimated } & \text { Expected }&\text { Activity } \\\text { Cost Pool } & \text { Cost } & \text { Hard-Cover }&\text { Soft-Cover }&\text { Total } \\\hline\text { Activity } 1 & \$ 15,000 & 800 & 700 & 1,500 \\\text { Activity } 2 & \$ 14,900 & 500 & 1,500 & 2,000 \\\text { Activity } 3 & \$ 27,600 & 800 & 400 & 1,200\end{array}$ How much are total overhead costs to be charged to hardcover books?

• A)$30,125
• B)$8,000
• C)$84,945
• D)$25,691

---

Definitions:

Mean Age

The average age of all individuals in a specific group, calculated by adding their ages together and dividing by the number of individuals.

Null Hypothesis

A statement or idea that posits no statistical significance or effect in a given set of observations, used as a starting point for testing.

Condensed Form

A representation of information or a work that has been shortened or summarized, focusing on essential elements.

Main Ideas

Main ideas refer to the central or most important thoughts or messages conveyed in a text or conversation.