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

question 35

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, the overhead assigned to labor related activities would be? (round to 5 decimal places)

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

---

Definitions:

Advancing Age

The process of becoming older, which may impact health status and the need for care.

Cigarette Smoking

The act of inhaling and exhaling the smoke produced by burning tobacco contained in cigarettes, which is known to be harmful to health.

Family History

The record of diseases or health conditions present in one's family, which can be important for assessing the risk of genetic disorders.

Serum Sodium

The concentration of sodium ions in the blood, essential for maintaining electrolyte balance and fluid regulation.