Exhibit 17-5 the Following Information Is Available for Dakota Company

question 53

Multiple Choice

Exhibit 17-5 The following information is available for Dakota Company:
*allocated based on direct labor hours
Dakota Company has decided to allocate its manufacturing overhead cost using activity-based costing. Manufacturing overhead will be allocated based on batch-level and product line manufacturing as follows:

-Refer to Exhibit 17-5. What is Dakota Company's gross margin for Product 2 using activity based costing?

• A) $300,000
• B) $350,000
• C) $480,000
• D) $30,000

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Definitions:

Trade Barriers

Measures implemented by countries to restrict international trade, including tariffs, quotas, and non-tariff barriers.

Basic Types

Fundamental categories or classes into which things can be grouped based on common characteristics.

World Economy

The global network of economic activities and transactions, encompassing all of the world's national economies and facilitating international trade and investment.

Free Trade

An economic policy that allows imports and exports among member countries with little to no tariff barriers.