Sibble Corporation Uses Activity-Based Costing to Assign Overhead Costs to Products

question 103

Multiple Choice

Sibble Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $12,400; Supervising, $4,400; and Other, $5,200. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:
-What is the overhead cost assigned to Product H3 under activity-based costing?

• A)$10,974
• B)$11,000
• C)$3,300
• D)$14,274

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Definitions:

Physical Activities

Bodily movements produced by skeletal muscles that require energy expenditure, including exercises and daily activities.

Psychological Traits

Enduring characteristics of an individual's behavior, thoughts, and emotions.

Social Relationships

Connections between individuals in a society, governed by affinities, interactions, and social structures.

Heart Attack

A medical emergency characterized by the death of heart muscle due to the loss of blood supply.