Unique Finds Sells Fine Collectible Statues and Has Implemented Activity-Based

question 120

Multiple Choice

Unique Finds sells fine collectible statues and has implemented activity-based costing. Costs in the shipping department have been divided into three cost pools. The first cost pool contains costs that are related to packaging and shipping. Unique has determined that the number of boxes shipped is an appropriate cost driver for these costs. The second cost pool is made up of costs related to the final inspection of each item before it is shipped and the cost driver for this pool is the number of individual items that are inspected. The final cost pool is used for general operations of the department and the cost driver is the number of orders. Information about the activities is summarized below:
$\begin{array}{|l|c|c|c|}\hline\text { Cost Pool } & \begin{array}{c}\text { Estimated } \\\text { Total Costs }\end{array} & \text { Cost Driver } & \text { Estimated } \\&&&\text { Annual Activity }\\\hline \text { Packaging and shipping } & \$ 67,200 & \text { Number of boxes shipped } & 16,000 \text { boxes } \\\hline \text { Final inspection } & 200,000 & \text { Number of individual items inspected } & 100,000 \text { items } \\\hline \text { General operations } & 85,000 & \text { Number of orders } & 10,000 \text { orders } \\\hline\end{array}$
During June, 4,000 items were sold reflecting 800 orders that were packed and shipped in 2,100 boxes. What amount is allocated to each order for general operations of the department?

• A) $4.20
• B) $29.53
• C) $8.50
• D) $10.00

Comprehend the emergence and failure of the mass manufacturing/job control unionism model due to economic instability.

Assess the relationship between scientific management principles and modern employment relations issues.

Examine the application and effects of Fordism and Taylorism in the context of assembly line production and labor relations.

Evaluate the impact of employee empowerment and education on workplace efficiency and innovation.

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Definitions:

Price Ceiling

A government-imposed limit on the price charged for a product, intended to prevent prices from rising too high.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, often due to market prices being higher.

Substitutes

Goods or services that can be used in place of each other, allowing consumers to switch if there is a change in price or availability.

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the actual amount they receive due to market dynamics.