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 using the new rates, what labor cost is assigned to Model F in this approximately relevant ABC system?
A) $60,000
B) $102,000
C) $153,000
D) $225,000
Correct Answer:
Verified
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