Pluton Makes Particular Plastics for Sale to the Public

question 12

Multiple Choice

Pluton makes particular plastics for sale to the public and the government.Basic cost data for a 100-pound drum of one particular product called Xentra appears below: $\begin{array}{c}\begin{array}{lll}\\ \text {Chemical Xeta, gals}\\ \text {Chemical Thenta, gals }\\ \text {Base material, pound }\\ \text {100-1b lined drum} \end{array}\begin{array}{lll} \text {Qty}\\15\\35\\20\\1 \end{array}\begin{array}{rr} & \text { Cost } \\\$ & 25.00 \\\$ & 27.50 \\\$ & 1.00 \\\$&51.83\end{array}\end{array}$

Variable factory overhead is estimated to be $1,200,000 per month,when 1,000,000 pounds of various products are produced.The plant employs 20 chemical workers who typically work 175 hours each per month and are paid $24 per hour.Other workers are classified as indirect and are included in fixed overhead.The highly automated plant typically runs 21,000 machine hours per month.The preparation of one 100-pound batch of Xentra needs ten minutes of direct labor and 75 minutes of machine time.Fixed manufacturing overhead totals $3,500,000 per month.Forty percent of the fixed manufacturing overhead is labor-related costs and the balance is machine-related costs.
Assuming Pluton selects the cost allocation method as per pound,how much will profits increase on this order compared with allocating overhead per drum (the current system) ?

• A)No change
• B)Change by $31,666
• C)Change by $17,571
• D)Change by $6,381
• E)None of the choices are correct

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Definitions:

Self-Evaluation

A phase of self-management and intervention that requires students to compare their performance against some criterion. Self-monitoring is a necessary prerequisite. Students must have some form of data (from self-monitoring) to evaluate their performance. The goal is to have students examine the degree to which a match exists between their behavior and some self-selected standard.

Self-Graphing

A self-assessment technique where individuals record and visually display data about their own behaviors over time.

Reactivity

The phenomenon where individuals alter their behavior or responses because they know they are being observed.

External Self-Reinforcement

A type of reinforcement paralleling that administered by a teacher. However, instead of the teacher delivering the reinforcer, the student performs this task.