Aunt Lucy's Candies Aunt Lucy's Candies sells standard and premium chocolate candies through its catalog business. Many of the candies are sold in bulk to other companies. Last year, the company incurred $400,000 in overhead costs. After implementing activity-based costing (ABC), the company's controller identified the following information:
The number of activities for standard and premium candies is as follows:
Refer to the Aunt Lucy's Candies information above. If a single sales order for premium candies requires 2 purchase orders for a total of 500 pieces (units), how much overhead should be assigned to that order?
A) $201.08
B) $204.93
C) $262.56
D) $240.00

Question

Aunt Lucy's Candies Aunt Lucy's Candies sells standard and premium chocolate candies through its catalog business. Many of the candies are sold in bulk to other companies. Last year, the company incurred $400,000 in overhead costs. After implementing activity-based costing (ABC), the company's controller identified the following information:
 The number of activities for standard and premium candies is as follows:
 Refer to the Aunt Lucy's Candies information above. If a single sales order for premium candies requires 2 purchase orders for a total of 500 pieces (units), how much overhead should be assigned to that order?
A) $201.08 
B) $204.93 
C) $262.56 
D) $240.00

Quizplus · Accepted Answer

The Answer of Aunt Lucy's Candies Aunt Lucy's Candies sells standard and premium chocolate candies through its catalog business. Many of the candies are sold in bulk to other companies. Last year, the company incurred $400,000 in overhead costs. After implementing activity-based costing (ABC), the company's controller identified the following information:
 The number of activities for standard and premium candies is as follows:
 Refer to the Aunt Lucy's Candies information above. If a single sales order for premium candies requires 2 purchase orders for a total of 500 pieces (units), how much overhead should be assigned to that order?
A) $201.08 
B) $204.93 
C) $262.56 
D) $240.00

Aunt Lucy's Candies Aunt Lucy's Candies Sells Standard and Premium