Manton Corporation Uses an Activity Based Costing System to Assign

question 88

Multiple Choice

Manton Corporation uses an activity based costing system to assign overhead costs to products.In the first stage, two overhead costs-equipment expense and indirect labor-are allocated to the three activity cost pools-Processing, Supervising, and Other-based on resource consumption.Data to perform these allocations appear below: In the second stage, 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 Processing activity cost pool under activity-based costing in the first stage of allocation?

• A)$10, 600
• B)$21, 000
• C)$21, 600
• D)$600

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Definitions:

Decatastrophize Technique

A cognitive-behavioral therapy technique aimed at reducing anxiety by challenging and modifying catastrophic thoughts.

Overestimating

The cognitive bias of appraising a situation or an outcome as being more likely or significant than it actually is.

Beck's Cognitive

A therapeutic approach developed by Aaron T. Beck, focusing on identifying and challenging negative thinking patterns to treat psychological disorders.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.