Allure Company Manufactures and Distributes Two Products, M and XY

question 17

Multiple Choice

Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information:
$$\begin{array} { l l r r r } \text { Activity } & \text { Cost Driver } & \text { Amount } & { \text { M } } & { \text { XY } } \\\text { Production setups } & \text { Number of setups } &8 2 , 0 0 0 &8 & 12 \\\text { Material hardling } & \text { Number of parts } & 48,000 & 56 & 24 \\\text { Packaging costs } & \text { Number of urits } & 130,000 & 80,000 & 50,000 \\& &\$ 2 6 0 , 0 0 0 & &\end{array}$$
-
What is the total overhead allocated to Product M using the current system?

• A) $113,600.
• B) $130,000.
• C) $146,400.
• D) $160,000.

Understand the concept of synergy in group performance.

Recognize the effects of distraction on task performance.

Identify and explain the phenomenon of groupthink.

Understand the concept of evaluation apprehension and its impact on performance.

---

Definitions:

Affective Component

The emotional aspect of an attitude or response, reflecting feelings or emotions associated with a particular object, person, or situation.

Behavioral Component

The aspect of attitudes that involves intentions, actions, or observable responses in relation to an object or situation.

Antecedents

Factors or events that exist or occur before a specific behavior or decision, influencing its outcome.

Affective Events Theory

A model suggesting that workplace events cause emotional reactions that can impact employees' job performance and satisfaction.