Lysiak Corporation Uses an Activity Based Costing System to Assign

question 299

Multiple Choice

Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Distribution of Resource Consumption Across Activity Cost Pools:
In the second stage, 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 for the company's two products follow:Activity:
How much overhead cost is allocated to the Machining activity cost pool under activity-based costing in the first stage of allocation?

• A) $31,800
• B) $3,600
• C) $15,300
• D) $28,200

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Definitions:

Psychological Perspective

A viewpoint in psychology that emphasizes understanding human behavior by looking at mental functions and psychological processes.

Attachment

An emotional bond that typically forms between infants and their caregivers, influencing patterns of interpersonal relationships.

Motor Skills

The abilities required to control and coordinate the movements of the body, categorized into fine (small movements, such as writing) and gross (larger movements, such as walking) motor skills.

Early Childhood

The period in human development from birth to approximately 8 years old, a crucial time for physical, cognitive, and social-emotional growth.