Ssume That a Pet Food Manufacturer Is Considering Adding Two

question 94

Multiple Choice

ssume that a pet food manufacturer is considering adding two types of pet food to their existing product line. Research had determined that there is good demand for dog food in forty pound bags and cat food in one-half pound cans.
The company identified the following partial list of activities, costs, and activity drivers expected for the next year.

-Refer to the data above. How much overhead cost will be assigned to each product line using activity-based costing (ABC) ?

• A) Dog Food: $462,500; Cat Food: $462,500.
• B) Dog Food: $860,000; Cat Food: $65,000.
• C) Dog Food: $60,000; Cat Food: $45,000.
• D) Dog Food: $800,000; Cat Food: $20,000.
• E) Dog Food: $320; Cat Food: $320.

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