A Company Uses Activity-Based Costing to Determine the Costs of Its

question 89

Multiple Choice

A company uses activity-based costing to determine the costs of its three products: A,B,and C.The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:
-How much overhead will be assigned to Product B using activity-based costing?

• A)$56,500
• B)$78,000
• C)$62,500
• D)$197,000
• E)$70,000

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Definitions:

Labor Supply Curve

A graphical representation of the relationship between the quantity of labor supplied and the wage rate in an economy.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, calculated as the percentage change in quantity demanded divided by the percentage change in price.

Logarithmic Scales

Logarithmic scales are a way of displaying data on graphs where the scale is divided according to orders of magnitude, so each step on the scale represents a tenfold change in the data.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of product or service.