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

question 20

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 the equally accurate reduced ABC system, using consumption ratios for labor related and batch inspections, what allocation rate would be used to assign labor related costs? (round to 5 decimal places)

• A) 0.375
• B) 0.60
• C) 0.625
• D) 0.40

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Definitions:

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A technique involving the tensing and relaxing of muscle groups in sequence to achieve physical and mental relaxation.

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A behavior modification system that uses tokens as a form of reward for performing targeted behaviors, which can later be exchanged for specific rewards.

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