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

question 229

Multiple Choice

Goertz Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, 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:
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:
Finally, the costs of Machining and Order Filling are combined with the following sales and direct cost data to determine product margins.Sales and Direct Cost Data:
How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

• A) $5,100
• B) $900
• C) $27,000
• D) $6,000

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Definitions:

Autonomic Nervous System

The part of the nervous system that controls involuntary functions in the body, such as heart rate, digestion, and respiratory rate, comprising the sympathetic and parasympathetic nervous systems.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for physical activity by inducing the fight-or-flight response.

Somatic Nervous System

Part of the peripheral nervous system that handles voluntary control of body movements via skeletal muscles.

Synaptic Connections

The points of contact through which neurons communicate with each other, allowing for the transmission of signals in the brain.