How Much Overhead Cost Is Allocated to the Order Filling

question 81

Multiple Choice

How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

• A)$400
• B)$4,700
• C)$14,700
• D)$5,100

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Definitions:

Bailee

An individual or entity given temporary custody of someone else's property under a bailment agreement.

Liability

The state of being legally responsible for something, often referring to the obligation to repay debts or to compensate for loss or damage.

Professional Bailee

A person or entity specialized in the custody or management of others' property, often for a fee.

Warehouse Company

A warehouse company specializes in storing goods and merchandise in large buildings for manufacturers, importers, exporters, wholesalers, or logistic businesses.