Activity Rates from Hample Corporation's Activity-Based Costing System Are Listed

question 50

Multiple Choice

Activity rates from Hample Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:
Last year, Product J27W involved 30 customer orders, 152 assembly hours, and 54 batches. How much overhead cost would be assigned to Product J27W using the activity-based costing system?

• A) $24,702.12
• B) $5,419.38
• C) $4,634.28
• D) $104.67

---

Definitions:

Hedging Risk

The process of making an investment or entering into a financial transaction in order to reduce the risk of adverse price movements in an asset.

Exchange-rate Risk

The risk of losing money due to unfavorable changes in exchange rates when investing in foreign-denominated securities.

Hedged

In investment, using strategies to reduce or eliminate the risk of adverse price movements in an asset.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often used for commodities or financial instruments.