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

question 83

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 equally accurate reduced ABC system, using consumption ratios for labor related and batch inspections, the overhead cost assigned to Model F would be? (round to 5 decimal places)

• A) $204,000
• B) $318,750
• C) $306,000
• D) $191,250

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Definitions:

American Psychological Association

A professional organization representing psychologists in the United States, also known for its publication standards for research.

Bar Charts

A graphical representation of data using bars of different heights or lengths to compare various categories.

Frequency Polygons

A graphical device for understanding the shapes of distributions. They are a kind of line graph that shows the frequency of a set of data.

Modality

The characteristic of data or signals that refers to the method or medium of communication or expression.