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

question 34

Multiple Choice

Lake 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: Finally, the costs of Processing and Supervising are combined with the following sales and direct cost data to determine product margins. What is the product margin for Product L2 under activity-based costing?

• A)$32, 764
• B)$69, 300
• C)$17, 344
• D)$56, 200

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Definitions:

Therapeutic Relationship

The professional bond between therapist and client, built on trust, empathy, and mutual understanding, which facilitates healing and personal growth.

Social Dynamics

The study of the behavior of groups that results from the interactions of individual group members.

Working Phase

The stage in a therapeutic relationship where the majority of therapeutic work happens, involving active strategies to address the client's issues.

Theoretical Conceptualization

The process of framing a client's experience and difficulties within a particular psychological theory to guide therapy.