Deemer Corporation Has an Activity-Based Costing System with Three Activity

question 381

Multiple Choice

Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Distribution of Resource Consumption Across Activity Cost Pools:
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 for the company's two products follow:Activity:
What is the overhead cost assigned to Product X0 under activity-based costing?

• A) $41,580
• B) $39,500
• C) $47,900
• D) $6,320

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Definitions:

Explicit Self-esteem

The conscious and deliberate evaluation of one's worth or value as an individual.

Reflected Glory

The phenomenon of basking in the success or positive attributes of another person or group to which one is connected, enhancing one's self-esteem.

Implicit Self-esteem

A form of self-esteem that is revealed by subconscious or automatic responses rather than conscious reflection.

Social Stigma

The disapproval of, or discrimination against, individuals or groups based on perceivable social characteristics that serve to distinguish them from other members of a society.