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

question 202

Multiple Choice

Dercole 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: Machining, $43,200; Order Filling, $13,900; and Other, $14,900. 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 appear below: What is the overhead cost assigned to Product N8 under activity-based costing?

• A) $4,170
• B) $31,536
• C) $35,706
• D) $36,000

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Definitions:

Assimilation

The process by which individuals or groups adopt the culture, practices, and perspectives of another group, often losing their original identity.

Accommodation

In psychology, the process of adjusting one's cognitive structures to incorporate new information; in general usage, making suitable arrangements or adjustments.

Schemas

Cognitive structures that help individuals organize and interpret information about the world around them.

Ego-Integrity Vs. Despair

A stage in Erik Erikson's theory of psychosocial development where older adults reflect on their life and either achieve a sense of satisfaction or fall into despair.