Traughber Corporation Uses an Activity Based Costing System to Assign

question 110

Multiple Choice

Traughber Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs-equipment expense and indirect labor-are allocated to the three activity cost pools-Processing, Supervising, and Other-based on resource consumption. Data to perform these allocations appear below: In the second stage, 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:
-What is the overhead cost assigned to Product B4 under activity-based costing?

• A)$1,620
• B)$39,000
• C)$3,720
• D)$5,340

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Definitions:

Sugar

A sweet-flavored substance derived from sugarcane or sugar beet, used predominantly as a sweetener in food and drinks.

Partying With A Plan

Approaching social gatherings with strategies to ensure they are enjoyable, safe, and aligned with one's responsibilities and goals.

No Drinking

A personal or societal choice to abstain from consuming alcoholic beverages.

Unhealthy Addiction

A detrimental dependence on a substance, activity, or behavior that negatively impacts one's physical or mental health.