Martin Company Manufactures Two Models of Pens, a Standard and a Deluxe

question 106

Multiple Choice

Martin Company manufactures two models of pens, a standard and a deluxe model.Three activities have been identified as cost drivers and the related overhead costs $60,000) pooled together to arrive at the following information: $\begin{array}{cccc} & \begin{array}{c}\text { Number } \\\text { of }\end{array} & \begin{array}{c}\text { Number } \\\text { of }\end{array} & \begin{array}{c}\text { Number } \\\text { of }\end{array} \\\text { Product } & \text { Setups } & \text { Components } & \text { DLH }\\\hline\text { Standard } & 22 & 8 & 375 \\\text { Deluxe } & 28 & 12 & 225 \\& & & \\\text { Costs per pool } & \$ 15,000 & \$ 36,000 & \$ 9,000\end{array}$ If activity?based costing is used, the cost assigned to the standard model using the number of direct-labor hours would be _____.

• A)$37,500
• B)$22,500
• C)$3,375
• D)$5,625

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Definitions:

Chisel-Like Edges

Describes tool features or natural objects that possess sharp, cutting edges similar to those of a chisel.

Brain Expansion

Refers to the process of increase in brain size and complexity, often related to evolutionary advancements in various species, particularly humans.

Organized Hunting

The coordinated and planned effort by a group of individuals to pursue and capture or kill wild animals for food, sport, or other purposes.

Homo Erectus

An extinct hominin species that lived from approximately 1.9 million to 140,000 years ago, known for being one of the first to exhibit humanlike walking and use of tools.