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

question 61

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 consumption ratios for labor related and machine hours, the overhead cost assigned to Model X would be? (round to 5 decimal places)

• A) $74,179.50
• B) $209,099.89
• C) $255,000
• D) $435,870.50

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