Linden,Inc

question 56

Multiple Choice

Linden,Inc.uses a 5,000 square foot factory space that it rents for $2,500 a month for all its manufacturing activities.Linden has decided to switch to an activity-based costing system,and has identified its activities as follows: Preparation and Setup,Machining,Finishing,and Quality Control.500 square feet of the factory are used for machining,while 2,000 square feet (each) are used for Preparation and Setup and Quality Control.Finishing uses 500 square feet.When assigning indirect costs to each activity,how much factory rent should be assigned to the Preparation and Setup cost pool?

• A)$250
• B)$500
• C)$1,000
• D)$2,000

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Definitions:

Tranquilizers

Medications used to reduce tension and anxiety, operating similarly to sedatives but often referring to a wider range of drug classes.

Xanax

A prescription medication used primarily for treating anxiety and panic disorders, known chemically as alprazolam.

Valium

A brand name for diazepam, a medication that is part of the benzodiazepine family, commonly used to treat anxiety, muscle spasms, and seizures.

Anxiety Disorders

A category of mental health diagnoses that lead to excessive nervousness, fear, apprehension, and worry.