Beartowne Enterprises Uses an Activity-Based Costing System to Assign Costs

question 194

Multiple Choice

Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division. The following units were produced in December with the following information:
Total manufacturing costs for Part 003 is

• A)$40,075
• B)$27,650
• C)$50,075
• D)$37,650

---

Definitions:

Investing Activities Section

Part of the cash flow statement that shows the cash spent on and received from investments in assets, loans, and other business activities.

Book Value

The value of an asset as recorded on a company’s balance sheet, representing the cost of the asset minus accumulated depreciation.

Gain

An increase in equity resulting from the sale of an asset for more than its purchase price or carrying value, not related to the company's primary operations.

Accounts Receivable

Represents money owed to a company by its clients or customers for goods or services that have been delivered or used but not yet paid for.