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

question 68

Multiple Choice

Capizzi 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 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:
-How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

• A)$39,800
• B)$200
• C)$8,000
• D)$7,800

Understand the components and types of intentional torts, including wrongful interference, battery, assault, and fraud.

Recognize the conditions under which liability for defamation and false imprisonment may arise.

Identify the circumstances under which competitive behavior crosses into wrongful interference with business.

Comprehend the legal principles surrounding compensatory and punitive damages in tort actions.

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Definitions:

Marginal Cost Curve

A graphical representation showing how the cost of producing one more unit of a good varies with the level of output.

Average Revenue

Total revenue from the sale of a product divided by the quantity of the product sold (demanded); equal to the price at which the product is sold when all units of the product are sold at the same price.

Average Cost

is the cost per unit of output, calculated by dividing total costs by the total quantity of output produced.

Patent

A legal document granted by the government, giving an inventor exclusive rights to use, make, and sell an invention for a certain period of time.