Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division. The following units were produced in December with the following information:
Total assembly fees for Part 002 is
A)$1,000.
B)$1,250.
C)$1,500.
D)$2,500.

Question

Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division.  The following units were produced in December with the following information:
 Total assembly fees for Part 002 is
A)$1,000. 
B)$1,250. 
C)$1,500. 
D)$2,500.

Quizplus · Accepted Answer

The total cost of assembly fees for Part 002 is $1,500, as calculated by multiplying the unit cost of $25 by the total number of units produced for Part 002, which is 60.

Beartowne Enterprises Uses an Activity-Based Costing System to Assign Costs