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

question 93

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, 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

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Definitions:

Incidence of Schizophrenia

The rate or frequency at which new cases of schizophrenia are diagnosed in a specific population over a certain period of time.

Upper Classes

Social groups occupying the highest positions in a social hierarchy, often having considerable wealth, influence, or privilege.

Middle Classes

A socioeconomic group between the working class and the upper class, typically characterized by moderate to high income, education, and professional occupations.

Negative Symptoms

Features of schizophrenia and other disorders characterized by deficits or diminutions, such as lack of emotion, reduced social functioning, or apathy.