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

question 66

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 using the new rates, what labor cost is assigned to Model F in this approximately relevant ABC system?

• A) $60,000
• B) $102,000
• C) $153,000
• D) $225,000

---

Definitions:

Imaginations

The faculty or action of forming new ideas, concepts, or images not present to the senses.

Position of Authority

A role or designation within an organization that holds the power to make decisions, dictate policies, and influence others' actions.

Transformational Leaders

Leaders who inspire and motivate employees by creating a vision of the future that compels and guides change within an organization.

Inspire

To fill someone with the urge or ability to do or feel something, especially to do something creative or beneficial.