Figure 4-21 Appleby Manufacturing Uses an Activity-Based Costing System. the Company Produces

question 14

Multiple Choice

Figure 4-21
Appleby Manufacturing uses an activity-based costing system. The company produces Model F and Model G. Information relating to the two products is as follows:
The following overhead costs are reported for the following activities of the production process:
Jones manufacturing has used activity based costing to assign costs to Models F and G as given in the table below:
Appleby Manufacturing wants to implement an approximately relevant ABC system by using the two most expensive activities for cost assignment.
-Refer to Figure 4-21. Under this new approach, which two activities would be selected as the cost pools?

• A) materials handling and labor related
• B) labor related and batch inspections
• C) product design and batch inspections
• D) materials handling and central purchasing

Identify the current international body responsible for establishing accounting rules.

Define generally accepted accounting principles (GAAP) and their significance in accounting practices.

Understand the fundamental principles and calculations involved in activity-based costing (ABC).

Comprehend the distinctions among plantwide overhead rate, departmental overhead rate, and ABC.

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Definitions:

Self-focus

A psychological state where an individual's attention is concentrated on themselves, their feelings, thoughts, and actions.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical behavior of a sexual nature that affects an individual's employment or creates a hostile environment.

Repeated Unwanted

Continuous occurrences of undesirable or unpleasant actions or events that persist despite efforts to stop them.

Deliberate

Done consciously and intentionally, often after careful thought or as a result of a decision.