Loffredo Corporation Has Provided the Following Data from Its Activity-Based

question 78

Multiple Choice

Loffredo Corporation has provided the following data from its activity-based costing accounting system: Distribution of Resource Consumption across Activity Cost Pools:
Activity Cost Pools The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.
-How much supervisory wages and factory supplies cost would be assigned to the Batch Processing activity cost pool?

• A)$136,500
• B)$210,000
• C)$420,000
• D)$186,000

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Definitions:

After-Tax Net Income

The amount of income that remains after all applicable taxes have been subtracted from the total revenue.

Initial Investment

The original sum of money used to start a business venture or investment.

Accounting Rate of Return

A financial ratio that measures the expected profitability of an investment, calculated as the average annual profit divided by the initial investment.

Cash Flows

The movement of money into and out of a business, used to assess the company's liquidity, financial health, and profitability over time.