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

question 100

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 using the new rates, what are the overhead costs assigned to Model G in this approximately relevant ABC system?

• A) $120,000
• B) $208,250
• C) $255,000
• D) $301,750

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Definitions:

Task Environment

The immediate external elements including competitors, customers, suppliers, and regulatory agencies that directly influence an organization's operations and performance.

Competitors

Businesses or individuals that are in the same market and vie for the same customers or resources.

Employees

Individuals who are hired by a company or organization to perform specific duties in exchange for compensation, such as wages or salaries.

Integration

The process of combining or coordinating separate elements of an organization or system to function together effectively.