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:

Dentists Anesthetize

The process by which dentists use medication to numb areas of the mouth during procedures to prevent pain.

Trigeminal Nerve

The fifth nerve in the cranium, accountable for transmitting sensory information from the face and head area, and controlling motor activities like biting and chewing.

Pain Impulses

Neural signals that convey the sensation of pain from the peripheral nervous system to the central nervous system.

Facial Expression

The movement of the facial muscles to convey emotions and communicate nonverbally.