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

question 98

Multiple Choice

Studler Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other.In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption.Data used in the first stage allocations follow: 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 for the company's two products follow: How much overhead cost is allocated to the Supervising activity cost pool under activity-based costing?

• A)$18, 600
• B)$16, 600
• C)$19, 100
• D)$2, 500

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Definitions:

Supply Curve

A graph showing the relationship between the quantity of a good supplied and its price, typically upward sloping.

Movement

A change or development in a particular direction, often referred to in contexts ranging from physical relocation to shifts in opinions or trends.

Supply Curve

represents the relationship between the price of a good and the quantity of that good suppliers are willing to produce and sell, typically upward sloping because higher prices incentivize more production.

Shift

A change in demand or supply where the entire curve moves either right (increase) or left (decrease), signifying changes in market conditions.