One of Matheny Company's Activity Cost Pools Is Inspecting, with Estimated

question 40

Multiple Choice

One of Matheny Company's activity cost pools is inspecting, with estimated overhead of $200,000. Matheny produces throw rugs (700 inspections) and area rugs (1,300 inspections) . How much of the inspecting cost pool should be assigned to throw rugs?

• A) $70,000.
• B) $100,000.
• C) $107,692.
• D) $200,000.

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Definitions:

Annual Production

The total quantity of goods or services produced by a company or facility within a one-year period.

Constrained Resource

A resource within a manufacturing or production process that limits the overall output due to its limited capacity.

Profitable Product

A product that generates more revenue than the costs associated with its production, marketing, and distribution.

Sufficient Time

Proper or adequate amount of time needed to complete a task or process.