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

question 196

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 packaging fees for all three parts is:

• A)$36,000
• B)$32,000
• C)$16,875
• D)$15,300

---

Definitions:

Total Cost

The complete amount of money required for the production of a given level of output, including both fixed and variable costs.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the profits that exceed normal expected profits.

Marginal Revenue

The surplus earnings generated by the sale of one extra unit of a product or service.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.