Consider the following information from a company's records for 2014: 
Required:
Compute the amount of R&D expense for 2014. The company normally uses straight-line depreciation for plant assets.
Definitions:
Activity-Based Costing
An accounting method that assigns costs to products or services based on the activities required to produce them, aiming for more accurate cost allocation.
Idle Capacity
Unused production capability in a given period, often resulting in inefficiency and increased costs.
Supervisory Wages
Costs associated with the salaries of supervisory personnel, considered part of manufacturing overhead in production environments.
Activity-based Costing
Activity-based costing is an accounting method that assigns costs to products based on the activities they require.
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