How Much Overhead Cost Will Be Assigned to Each Unit

question 202

Multiple Choice

How much overhead cost will be assigned to each unit of product using activity-based costing (ABC) ?

• A)Dog food: $4.62; cat food: $4.62.
• B)Dog food: $2.64; cat food: $2.64.
• C)Dog food: $8.60; cat food: $0.33.
• D)Dog food: $0.26; cat food: $8.60.
• E)Dog food: $0.12; cat food: $3.85.

---

Definitions:

Securities and Exchange Commission

A U.S. federal agency responsible for enforcing the federal securities laws, proposing securities rules, and regulating the securities industry.

1933 Securities Act

A federal statute that requires securities sold in the U.S. to be registered and to disclose relevant financial information, aiming to protect investors from fraud.

General Solicitation

The act of publicly advertising or promoting an investment opportunity, often regulated by securities law to protect investors.

Noninvestment Company

An entity primarily engaged in operations other than investing, reinvesting, or trading in securities and does not qualify as an investment company under relevant regulations.