Markham Company Makes Two Products: Basic Product and Deluxe Product

question 143

Multiple Choice

Markham Company makes two products: Basic Product and Deluxe Product. Annual production and sales are 1,700 units of Basic Product and 1,100 units of Deluxe Product. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Basic Product requires 0.3 direct labor hours per unit and Deluxe Product requires 0.6 direct labor hours per unit. The total estimated overhead for next period is $98,785.
The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools-Activity 1, Activity 2, and General Factory-with estimated overhead costs and expected activity as follows:
$$\begin{array} { l c c c c } & \text { Estimated } & { \text { Expected Activity } } \\& & \text { Basic } & & \\\text { Activity Cost Pool } & \text { Overhead Costs } & \text { Product } & \text { Deluxe Product } & \text { Total } \\\text { Activity 1 } & \$ 30,528 & 1,000 & 600 & 1,600 \\\text { Activity 2 } & 17,385 & 1,700 & 200 & 1,900 \\\text { General Factory } & 50,872 & 510 & 660 & 1,170 \\\text { Total } & \$ 98,785 & & &\end{array}$$
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(Note: The General Factory costs are allocated on the basis of direct labor hours.)
The overhead cost per unit of Deluxe Product under the activity-based costing system is closest to:

• A) $50.66.
• B) $26.09.
• C) $35.28.
• D) $38.16.

Describe the process and significance of mismatch repair in DNA replication fidelity.

Recognize the role of telomeres in chromosome protection and the function of telomerase.

Understand the principles of PCR (Polymerase Chain Reaction) and its application in amplifying DNA.

Explain the concept of DNA stability and how it is influenced by the composition of nucleotide pairs.

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Definitions:

Factory Depreciation

The systematic allocation of the cost of a manufacturing plant over its useful life.

Advertising Budget

The financial allocation set aside by a business for promoting its products or brand.

Sales Budget

An estimate of the sales revenue a company aims to achieve in a certain period.