Department D Has Recently Purchased and Installed New Computerized Equipment

question 8

Multiple Choice

Department D has recently purchased and installed new computerized equipment for Product X.This equipment will increase the overhead costs by $2,700 and decrease labor costs (due to time savings) in Department D by $3.00 per case.Machine hours will not change.If Smelly uses a plantwide rate based on direct labor hours,what is the revised product cost per case for Product X?

• A)$82.50
• B)$74.00
• C)$79.50
• D)$69.50

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Definitions:

Internal Dispositions

Enduring personality traits, attitudes, or behaviors that an individual consistently exhibits across different situations.

Situational Determinants

These refer to external factors or environmental conditions that influence an individual's behavior, emotions, and decisions in different contexts.

Conformity

A change in behavior due to explicit or implicit social pressure.

Fundamental Attribution Error

A cognitive bias that causes people to overestimate the influence of personality or dispositional factors on an individual's behavior while underestimating the influence of situational factors.