Ballweg Corporation Has an Activity-Based Costing System with Three Activity

question 119

Multiple Choice

Ballweg Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Finally, the costs of Machining and Order Filling are combined with the following sales and direct cost data to determine product margins.
-How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

• A)$10,300
• B)$9,600
• C)$700
• D)$16,900

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Definitions:

Polysaccharide

Large molecules composed of many sugar molecules bonded together, serving as energy stores or structural components in living organisms.

Pro-protein

An inactive precursor molecule that must be modified to become an active protein.

Nucleotides

Organic molecules that are the building blocks of nucleic acids like DNA and RNA; consisting of a nitrogenous base, a sugar, and one or more phosphate groups.

DNA Replication

The process by which a cell duplicates its DNA, ensuring each new cell receives an exact copy.