Zumbrunnen Corporation Uses Activity-Based Costing to Compute Product Margins

question 73

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 overhead cost assigned to Product H2 under activity-based costing?

• A)$41, 000
• B)$6, 840
• C)$14, 040
• D)$20, 880

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