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

question 165

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 the equally accurate reduced ABC system, using consumption ratios for labor related and batch inspections, the overhead assigned to labor related activities would be? (round to 5 decimal places)

• A) $318,750
• B) $204,000
• C) $306,000
• D) $191,250

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Definitions:

Parameter Types

The data types of parameters accepted by functions or methods, determining what kind of arguments can be passed to them.

Argument

A value or reference passed to a function or method when it is called, used as an input to influence the operation or output.

Accessor Methods

Methods in object-oriented programming used to get the values of private fields of a class.

Instance Variable

An instance variable is a variable declared in a class for which each object of the class has its own value.