Bachrodt Corporation Uses Activity-Based Costing to Compute Product Margins

question 264

Multiple Choice

Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: 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
Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.
The activity rate for the Processing activity cost pool under activity-based costing is closest to:

• A) $2.10 per MH
• B) $2.16 per MH
• C) $3.60 per MH
• D) $1.50 per MH

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Definitions:

Atoi

Short for "ASCII to integer," a function that converts a string representation of an integer into its numerical value.

Independent Modules

Separate units or components of a software program that can function independently and are often developed separately but work together as part of the larger application.

C Functions

Blocks of code in C programming that perform a specific task and can be called from other parts of a program.

Variables

Symbols in programming that are used to store data values that can be changed during program execution.