Trick's Costumes Has 65 Employees,who Are Distributed as Follows

question 51

Multiple Choice

Trick's Costumes has 65 employees,who are distributed as follows:
The payroll-related costs for the year are $1,043,050.If Trick's Costumes does not use departmental classification,how much is allocated to each department?

• A) $153,910
• B) $202,850
• C) $208,610
• D) $260,763

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Definitions:

Differential Level Activity

Refers to changes in operating activities that result in differences in costs or revenues under different scenarios or volumes.

Activity-Based Costing

A cost accounting method that assigns overhead and indirect costs to specific activities and objects, improving the accuracy of product and service costing.

Batch Level Activity

Activities and costs associated with processing a batch of units, which occur each time a batch is handled or processed, regardless of the number of units in the batch.

Activity-Based Product Costing

A costing method that allocates overhead and indirect costs to products based on the activities required to produce them.