Laningham Corporation Uses an Activity Based Costing System to Assign

question 55

Multiple Choice

Laningham Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs-equipment depreciation and supervisory expense-are allocated to three activity cost pools-Machining, Order Filling, and Other-based on resource consumption. Data to perform these allocations appear below: In the second stage, 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:
-What is the overhead cost assigned to Product H4 under activity-based costing?

• A)$32,385
• B)$35,205
• C)$2,820
• D)$33,500

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Definitions:

SUD

A term that stands for Substance Use Disorder, a condition that affects an individual's brain and behavior, leading to the inability to control use of substances such as legal or illegal drugs, alcohol, and medications.

Psychiatric Symptoms

Signs or manifestations of a mental disorder, which can affect thoughts, emotions, behaviors, and physical health.

Intoxication

A physiological state resulting from the ingestion of substances (such as alcohol, drugs) leading to alterations in perception, consciousness, cognition, and behavior.

Withdrawal

Physical and mental symptoms that occur when a person reduces or stops intake of a substance they are dependent on or addicted to.