Multiple Choice
The FSOJ Company undertakes the following activities in its production operation and incurred the following costs during the first half of 20x2: Processing the juice into 3 final products involves the use of 2 machines, each of which incurred amortization costs of $15,000 for the first half of 20x2. Each product requires a different set up on the processing machines, so FSOJ normally sets up the machines to produce concentrate for the first week of each month. The machine is then set up to produce apple juice for the next 2 weeks. Finally, workers set up the same machines to produce apple cider during the last week of each month.
During the first half of 20x2, 20% of the apples harvested were turned into apple juice concentrate, 50% were processed into apple juice, and 30% became apple cider. The relative sales values of each product were: 75% for apple juice, 20% for apple juice concentrate, and 5% for apple cider. The apple juice concentrate operation takes up 40% of FSOJ's total factory space. Regular apple juice and apple cider occupy 35% and 25%, respectively.
Which of the following activities is likely to be classified as product-level?
A) Packaging
B) Harvesting
C) Extracting
D) Prepare apples for processing
Correct Answer:

Verified
Correct Answer:
Verified
Q42: Cost accounting systems were originally developed to:<br>A)
Q43: Life Lessons provides academic enrichment and
Q44: Similar to other costing systems that include
Q45: Activity-based management can be used to manage
Q46: Generally speaking, activity-based costing traces direct costs
Q48: Le Château Joyal is an historic hotel
Q49: All of the following are uses of
Q50: In an ABC system, a cost driver
Q51: The best allocation base choice for an
Q52: Costs assigned to an activity pool for