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

question 137

Multiple Choice

Encarnacion 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.

-The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

• A)$8.00 per batch
• B)$17.00 per batch
• C)$26.67 per batch
• D)$85.00 per batch

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Definitions:

Antigens

Antigens are substances, often foreign, that provoke an immune response in the body, especially the production of antibodies.

Monocytes

A type of white blood cell involved in the immune response, capable of differentiating into macrophages and dendritic cells to combat infection.

Phagocytosis

A cellular process where cells, usually immune cells, engulf and digest particles or pathogens to eliminate them.

Rheumatoid Factor

An autoantibody that is often present in the blood of individuals with rheumatoid arthritis and some other autoimmune diseases or infections.