How Much Overhead Cost Will Be Assigned to the Dessert

question 82

Multiple Choice

How much overhead cost will be assigned to the dessert bar product line using activity-based costing (ABC) ?

• A)$340,750
• B)$247,818
• C)$16,000
• D)$297,500
• E)$313,500

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Definitions:

Average Collection Period

A metric that calculates the average time taken to receive payments from customers, indicating the efficiency of a company's credit and collection policies.

Days' Sales In Inventory

A financial metric indicating the average number of days that a company holds its inventory before selling it.

Full-Capacity Level

The maximum level of output a company can produce and sell with its current resources and without incurring significant additional costs.

Operating Capacity

The maximum amount of work that an organization can complete in a given period under normal circumstances.