Mirkle Corporation Uses the Following Activity Rates from Its Activity-Based

question 3

Multiple Choice

Mirkle Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Data for one of the company's products follow: The company produced 4,000 units of product during the period.Direct materials cost $7.30 per unit and direct labor cost $5.45 per unit.How much total cost would be assigned to the 4,000 units of Product P59G using the activity-based costing system?

• A)$61,014.40
• B)$39,214.40
• C)$10,014.40
• D)$51,000.00
• E)$31,814.40

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Definitions:

Interest Rate

The remuneration, depicted as a fraction of the principal, that a lender exacts from a borrower for asset utilization.

Income Effect

A change in the consumption patterns of individuals or economies due to a change in real income or purchasing power.

Labor-Supply Curve

A graphical representation showing the relationship between the quantity of labor supplied by workers and the wage rate.

Income Effect

How an alteration in income levels for a person or economy affects the demand for a particular good or service.