Reference: 17_06
Assume That the Oregon Ice Cream Company Is

question 48

Multiple Choice

Reference: 17_06
Assume that the Oregon Ice Cream Company is considering the costs of two of their product lines-ice cream sandwiches and dessert bars. The company identified the following partial list of activities, costs, and activity drivers expected for the next year.
$$\begin{array} { | l | c | c | } \hline \text { Activity } & \text { Expected Costs } & \text { Cost Driver } \\\hline \text { Extrusion costs } & \$ 637,500 & \text { Number batches made } \\\hline \text { Packaging costs } & \$ 44,000 & \text { Number of units made } \\\hline\end{array}$$ $$\begin{array} { | l | c | c | } \hline & \text { Ice Crearn Sandwiches } & \text { Dessert Bars } \\\hline \text { Production volume } & 350,000 \text { urits } & 2 0 0 , 0 0 0 \text { urits } \\\hline \text { Batches made } & 400 \text { batches } & 350 \text { batches } \\\hline\end{array}$$
-Refer to the data in the preceding tables.How much overhead cost will be assigned to the ice cream sandwich product line using activity-based costing (ABC) ?

• A) $340,000
• B) $368,000
• C) $28,000
• D) $850.08
• E) $433,682

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Definitions:

Rotation

The spinning movement of a planet or celestial body on its axis, resulting in the cyclical progression of days and nights.

Confining Pressure

The stress applied equally in all directions at any given point in the Earth's crust, influencing the physical properties and deformation of rocks.

Fluid Pressure

The force applied by a stationary fluid at any specific point inside it because of gravity.

Compression

A force that squeezes rock or sediment layers, reducing their volume or shortening their dimensions, often associated with fold mountains and faulting.