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

question 45

Multiple Choice

Figure 4-21 Jones Manufacturing uses an activity-based costing system.The company produces Model X and Model Y.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 X and Y as given in the table below:
Jones Manufacturing wants to implement an approximately relevant ABC system by using the two most expensive activities for cost assignment.
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Refer to Figure 4-21.Under this new approach using the new rates, what labor cost is assigned to Model X in this approximately relevant ABC system?

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

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Definitions:

Germ Layers

In animals, three embryonic tissue layers: endoderm, mesoderm, and ectoderm

Echinoderms

A phylum of marine animals characterized by radial symmetry, a calcareous skeleton, and a water vascular system, includes starfish and sea urchins.

Primitive Groove

A depression or furrow on the surface of an early embryo that is involved in the process of gastrulation, leading to the development of different layers.

Gastrulation

An early embryonic phase in animal development during which the single-layered blastula is reorganized into a multilayered structure known as the gastrula.