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

question 36

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. Using ABC as the benchmark, what is the percentage error in the cost assigned to Model G using the approximately relevant ABC approach? (round to 4 decimal places)

• A) 0.25%
• B) 0.12%
• C) 1.2%
• D) 2.5%

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Definitions:

Increased Turnover

The rise in the rate at which employees leave an organization and are replaced by new employees, often indicating issues with job satisfaction or engagement.

Techno-stress

The stress or anxiety experienced by individuals due to the use or adoption of new technologies.

Workplace Information

Data and insights related to an organization's operations, policies, and employee guidelines, which are commonly shared with employees to facilitate their work.

Communication Technologies

Tools and platforms used to facilitate information exchange, including digital media, internet platforms, and telecommunication devices.