Groch Corporation Uses Activity-Based Costing to Compute Product Margins

question 120

Multiple Choice

Groch Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Processing, Supervising, and Other. The costs in those activity cost pools appear below: 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 appear below: Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.
-What is the product margin for Product Q9 under activity-based costing?

• A)$32,200
• B)$3,293
• C)$23,600
• D)$18,008

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Definitions:

Mechanical Ventilation

A method of providing respiratory support using a machine (ventilator) to push air into and pull air out of the lungs of a patient who is unable to breathe adequately on their own.

Respiratory Rate

The number of breaths a person takes per minute, an important vital sign.

Tachypnea

Abnormally fast respirations, usually more than 24 respirations per minute.

Patent Airway

A clear and unobstructed passageway for air to move in and out of the lungs.