Tabby Totes, a Manufacturer of Travel Carriers for Felines, Uses

question 25

Multiple Choice

Tabby Totes, a manufacturer of travel carriers for felines, uses an ABC system. Tabby produces two carriers, Comfort Carrier and Luxury Carrier. Production and sales for Comfort Carrier is 800 units and Luxury Carrier is 600 units. Tabby uses thee activity cost pools. Estimated costs and expected activities is as follows: The cost per unit of the Comfort Carrier is:

• A) $40.00
• B) $23.53
• C) $42.00
• D) $31.25
• E) $28.57

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Definitions:

Posting Frequency

The regularity with which financial transactions are recorded and posted in the accounting system.

Accounts Payable

Liabilities of a business that are due to vendors or suppliers for goods or services received that have not yet been paid for.

Cash Payments Journal

A financial journal that records all cash outflows or payments made by a business.

Subsidiary Ledger

A ledger containing all the details of a general ledger account, allowing for more detailed information and analysis of that account.