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

question 38

Multiple Choice

Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Distribution of Resource Consumption Across Activity Cost Pools:
Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. 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 Supervising activity cost pool under activity-based costing?

• A) $15,800
• B) $1,200
• C) $17,000
• D) $14,600

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Definitions:

Amygdala

A subcortical forebrain structure; it serves a vital role in our learning to associate things with emotional responses and in processing emotional information.

Fearful Responses

Emotional and physiological reactions triggered by perceived threats or dangers, often involving increased heart rate and adrenaline production.

Hippocampus

A major component of the brains of humans and other vertebrates, playing critical roles in the consolidation of information from short-term memory to long-term memory and in spatial memory navigation.

London Taxi Drivers

refers to a study population often cited in psychological and neuroscientific research that has revealed notable increases in the size of the hippocampus associated with the complex navigational skills required by their profession.