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:

Male

Referring to the sex that is typically characterized by the production of small gametes (sperm) for reproduction, often associated with specific physical and hormonal traits.

Female

Referring to the sex of a species that is typically associated with reproductive functions that involve producing eggs or bearing offspring.

Newborn Babies

Infants in their first few weeks of life, characterized by rapid physical growth and developmental changes.

Imitation

The action of copying or mimicking the behaviors, actions, or appearance of someone else as a form of learning or social bonding.