Vontungeln Corporation Uses Activity-Based Costing to Compute Product Margins

question 144

Multiple Choice

Vontungeln Corporation uses activity-based costing to compute product margins.In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-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. Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. What is the product margin for Product I6 under activity-based costing?

• A)$2, 000
• B)$36, 000
• C)$11, 928
• D)$23, 688

---

Definitions:

Herzberg's Two-factor

A theory that suggests there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction.

Self-actualized Manager

A manager who has realized and fulfilled their own potential, as well as encouraged and facilitated the self-actualization of their employees.

Horizons

Plural for "horizon", often used metaphorically to refer to the range of one's knowledge, experience, or the potential future developments.

Psychological Process

The mental operations that underlie human behavior and interactions, including cognition, emotion, perception, and motivation.