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

question 10

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 are the overhead costs is assigned to Model Y in this approximately relevant ABC system?

• A) $120,000
• B) $208,250
• C) $255,000
• D) $301,750

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Definitions:

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