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

question 128

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.

-What is the product margin for Product C6 under activity-based costing?

• A)$12,480
• B)$30,700
• C)$5,680
• D)$41,700

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Definitions:

Brain Waves

The rhythmic or repetitive patterns of neural activity in the brain, measurable by electroencephalography (EEG).

Frequency

The number of times an event occurs within a specified period of time; in physics, it is the number of waves that pass a fixed point per unit of time.

Amplitude

The height or strength of a wave signal, which in the context of sound, relates to its loudness, and in light, its intensity.

Delta Waves

Slow brain waves typically associated with deep sleep and certain brain disorders, recorded with an electroencephalogram (EEG).