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

question 198

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, what is the new pool rate for labor related costs?

• A) 0
• B) $6
• C) $8.225
• D) $12.75

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Definitions:

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Guidelines or best practices that should be followed within a specific context or situation.

Lunch Time

The period during the day allocated for eating lunch, typically occurring in the midday.

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The characteristic of being on time or performing an action at the agreed or scheduled time.

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Actions that can result in increased knowledge, skill, and creativity; better products and services provided to diverse populations; and the ability to recruit excellent talent from the entire labor pool. Such practices include top management’s personal involvement, targeted recruitment, diversity education, network and support groups, and work and family policies that support diversity.