Zumbrunnen Corporation Uses Activity-Based Costing to Compute Product Margins

question 81

Multiple Choice

Zumbrunnen Corporation uses activity-based costing to compute product margins.Overhead costs have already been allocated to the company's three activity cost pools-Processing, Supervising, and Other.The costs in those activity cost pools appear below: 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 appear below: Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. What is the product margin for Product H2 under activity-based costing?

• A)$28, 000
• B)-$10, 840
• C)$6, 820
• D)$27, 700

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