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:

Immune System

The complex network of cells, tissues, organs, and the substances they produce, which helps protect the body from infections and diseases.

Hemagglutinin Stalk

The hemagglutinin stalk is a structural component of influenza viruses involved in the virus's attachment to and entry into host cells.

Performance-oriented

Focused on achieving results and meeting targets, often with an emphasis on efficiency, productivity, and outcomes.

Passive Activity

Economic actions in which the participant does not materially participate, often relating to certain types of business ventures or investments.