A corporation reported the following information (please scroll all the way down

Question

A corporation reported the following information (please scroll all the way down the data table to find the question) Total Budgeted Quantity Budgeted of Cost-Allocation Cost Hierarchy Indirect Base Category Costs Product $350,000 Sustaining Budgeted Indirect Cost Rate Activity 2 Design 80 parts- feet 3 Machine Output 58,00010,000 productionperproduction Operations unit-level machine- machine-hour OA. $1.20 OB, $400 OC. $20,000 O D. $30,000 E. S040 rade to Click to seloct your answer e Type here to search 2 4 6

Explanation / Answer

Shipment Cost per batch = 60000/150 = 400

Number of batched to be produced = 50000/1000 = 50 batches

Shipment cost to be allocated to a product line of 50000 units = 400*50 = 20000

Answer is C.$20000

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