Figure 4-21 Appleby Manufacturing Uses an Activity-Based Costing System

question 116

Multiple Choice

Figure 4-21 Appleby Manufacturing uses an activity-based costing system. The company produces Model F and Model G. Information relating to the two products is as follows: The following overhead costs are reported for the following activities of the production process:
Jones manufacturing has used activity based costing to assign costs to Models F and G as given in the table below:
Appleby Manufacturing wants to implement an approximately relevant ABC system by using the two most expensive activities for cost assignment.
Refer to Figure 4-21. Under this new approach, what cost would be assigned to materials handling?

• A) 0
• B) $40,000
• C) $140,000
• D) $290,000

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Definitions:

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