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

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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: 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 the equally accurate reduced ABC system, using consumption ratios for labor related and batch inspections, what allocation rate would be used to assign labor related costs? (round to 5 decimal places)  A)  0.375 B)  0.60 C)  0.625 D)  0.40 The following overhead costs are reported for the following activities of the production process:
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 the equally accurate reduced ABC system, using consumption ratios for labor related and batch inspections, what allocation rate would be used to assign labor related costs? (round to 5 decimal places)  A)  0.375 B)  0.60 C)  0.625 D)  0.40 Jones manufacturing has used activity based costing to assign costs to Models F and G as given in the table below:
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 the equally accurate reduced ABC system, using consumption ratios for labor related and batch inspections, what allocation rate would be used to assign labor related costs? (round to 5 decimal places)  A)  0.375 B)  0.60 C)  0.625 D)  0.40 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 the equally accurate reduced ABC system, using consumption ratios for labor related and batch inspections, what allocation rate would be used to assign labor related costs? (round to 5 decimal places)

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