Wedd Corporation Uses Activity-Based Costing to Assign Overhead Costs to Products

question 329

Multiple Choice

Wedd Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $27,200; Supervising, $9,300; and Other, $9,500. 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 appear below: What is the overhead cost assigned to Product O6 under activity-based costing?

• A) $2,325
• B) $23,000
• C) $14,837
• D) $12,512

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Definitions:

Brightly Colored

Possessing vivid or intense hues; often used to describe objects or materials that attract attention through their coloration.

Specific Nominal

A term or label that refers to a unique entity, place, or thing that can be named directly, usually without needing further description.

Proper Nouns

Names used for an individual person, place, or organization, spelling out unique entities.

Sport

Physical activities engaged in for recreational purposes or competitive sportsmanship, often governed by a set of rules or customs.