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

question 65

Multiple Choice

Sorice 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, $20,200; Supervising, $11,000; and Other, $66,800. 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 W7 under activity-based costing?

• A) $8,800
• B) $15,352
• C) $49,000
• D) $24,152

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Definitions:

Mining Partnership

A specialized form of association where two or more persons collaborate in the development and operation of a mine, sharing profits and losses proportionally to their contributions.

Mineral Interest

The legal share or entitlement to profits from minerals extracted from the ground, typically pertaining to property rights in the context of real estate.

Purported Partners

Individuals who are claimed to be partners in a business, sometimes without the legal or actual basis for such a partnership.

Doctrine of Respondeat Superior

A legal principle that holds an employer or principal liable for the actions of an employee or agent when those actions occur within the scope of employment or authority.