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 packaging fees for all three parts is:
A)$21,250.
B)$42,500.
C)$11,875.
D)$7,750.

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 packaging fees for all three parts is:
A)$21,250. 
B)$42,500. 
C)$11,875. 
D)$7,750.

Quizplus · Accepted Answer

A)$2.50 × (1,250 + 3,500 + 3,750)= $21,250

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