Paulson Company Has Two Products: Y and Z

question 33

Multiple Choice

Paulson Company has two products: Y and Z. The company uses activity-based costing. Estimated costs for the activity cost polls are as follows: The estimated cost for activity 3 per unit is closest to:

• A) $98.82
• B) $185.41
• C) $78.80
• D) $166.74

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Definitions:

Colorado Rockies

A major mountain range in the western United States extending from the northernmost part of New Mexico to British Columbia in Canada.

Materials Standards

Benchmarks or specifications set for the quality, quantity, and cost of materials used in production to achieve performance and efficiency goals.

Direct Materials Purchases Variance

This term refers to the difference between the actual cost of materials purchased and the expected (standard) cost of materials needed to manufacture the products during a specific period.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost.