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)$400
B)$1250
C)$1600
D)$2000

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)$400 
B)$1250 
C)$1600 
D)$2000

Quizplus · Accepted Answer

The question asks for the total assembly fees for Part 002, which is assigned costs in the activity-based costing system. Without additional information on the cost drivers and their corresponding rates, we cannot determine the exact cost breakdown for Part 002. However, we know that the total assembly fees for Part 002 in December is $1,600 based on the information given in the table. Therefore, the best choice is C.

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