A Company Identified the Following Partial List of Activities, Costs

question 42

Multiple Choice

A company identified the following partial list of activities, costs, and activity drivers expected for the next year: $$\begin{array} { | l | c | l | } \hline \text { Activity } & \text { Expected Costs } & { \text { Cost Driver } } \\\hline \text { Extrusion costs } & \$ 83600 & \text { Number batches made } \\\hline \text { Handling costs } & \$ 8,800 & \text { Number of arders Filled } \\\hline \text { Packaging costs } & \$ 40,500 & \text { Number of wits made } \\\hline\end{array}$$
$$\begin{array} { | l | c | c | } \hline & \text { Product A } & \text { Product B } \\\hline \text { Production volume } & 750,000 \text { units } & 600,000 \text { units } \\\hline \text { Batches made } & 200 \text { batches } & 750 \text { batches } \\\hline \text { Orders Filled } & 75 & 200 \\\hline\end{array}$$ How much overhead in total will be assigned to the Product A line using activity based costing?

• A)$42,500.
• B)$132,900.
• C)$90,400.
• D)$66,000.
• E)$66,450.

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Definitions:

Phonemes

The minimal sound component in a language that differentiates one word from another.

Morphemes

The smallest grammatical units in a language that carry meaning, such as prefixes, suffixes, and root words.

Algorithm

A step-by-step procedure or formula for solving a problem, typically used in computing and mathematical problem-solving.

Stroop Effect

A demonstration of cognitive interference where a delay in the reaction time of a task occurs due to a mismatch in the name of a color and the color in which it is printed.