Meester Corporation Has an Activity-Based Costing System with Three Activity

question 226

Multiple Choice

Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Distribution of Resource Consumption Across Activity Cost Pools:
Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:Activity:
How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

• A) $60,000
• B) $800
• C) $10,400
• D) $9,600

Appraise the impact of learning orientation within organizations on empowerment and self-leadership.

Understand the significance of initiating communication with engaging and relevant content.

Recognize the importance of focusing on future possibilities in the conclusions of negative messages.

Comprehend the strategic use of buffers to soften the impact of negative messages.

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Definitions:

Percentage-Of-Completion

An accounting method that recognizes revenues and gross profit on long-term contracts in proportion to the work completed to date.

Gross Profit

The difference between sales revenue and the cost of goods sold, representing the basic profitability of the sales of goods and services.

Construction Costs

Expenses incurred during the process of building structures, infrastructure, or other significant physical assets, including materials, labor, and overhead.

Service Cost

The expense recognized by an employer for the portion of an employee's pension or post-retirement plan earned during the year.