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

question 119

Multiple Choice

Ballweg Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. 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 Machining and Order Filling are combined with the following sales and direct cost data to determine product margins.
-How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

• A)$10,300
• B)$9,600
• C)$700
• D)$16,900

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Definitions:

Technopoly

A society that is overly dependent on technology, where technology dominates the culture, impacting human activities and social interactions.

Morality

Principles concerning the distinction between right and wrong or good and bad behavior.

Multinational Corporations

Large companies operating in several countries around the world, often with a centralized head office but decentralized operations and production.

Research and Development

The part of a business activity that is concerned with acquiring new knowledge and using it to develop new products, processes, or services or to improve existing ones.