Assume a company that uses activity-based costing (ABC) has only two products – A and B. The company does not have any organization-sustaining activities or unused capacity costs. The company’s total manufacturing overhead cost of $56,000 has been allocated to the three activities shown below:     Setups Machining Packing Orders Activity measure quantity: Product A 20   1,000   150 Activity measure quantity: Product B 20   ?   350 Overhead cost per activity cost pool ?   ?   $ 10,000 Activity rate    $ 150 per setup $ 8 per MH ?   How many machine-hours were consumed by Product B?   Multiple Choice   4,000   5,000   3,000   2,000

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.