Rocket Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe.The company, which uses activity-based costing, has identiﬁed ﬁve activities (and related cost drivers).Each activity, its budgeted cost, and related cost driver is identiﬁed below. Assume that Rocket is using a volume-based costing system, and the preceding overhead costs are applied to all products on the basis of direct labor hours. The overhead cost that would be assigned to the Standard product line is closest to:
A)$456,471.
B)$646,471.
C)$961,176.
D)$1,141,176.
E)None of the answers is correct.

Question

Rocket Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe.The company, which uses activity-based costing, has identiﬁed ﬁve activities (and related cost drivers).Each activity, its budgeted cost, and related cost driver is identiﬁed below.  Assume that Rocket is using a volume-based costing system, and the preceding overhead costs are applied to all products on the basis of direct labor hours. The overhead cost that would be assigned to the Standard product line is closest to:
A)$456,471. 
B)$646,471. 
C)$961,176. 
D)$1,141,176. 
E)None of the answers is correct.

Quizplus · Accepted Answer

The Answer of Rocket Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe.The company, which uses activity-based costing, has identiﬁed ﬁve activities (and related cost drivers).Each activity, its budgeted cost, and related cost driver is identiﬁed below.  Assume that Rocket is using a volume-based costing system, and the preceding overhead costs are applied to all products on the basis of direct labor hours. The overhead cost that would be assigned to the Standard product line is closest to:
A)$456,471. 
B)$646,471. 
C)$961,176. 
D)$1,141,176. 
E)None of the answers is correct.

Rocket Products Manufactures Three Types of Remote-Control Devices: Economy, Standard