Carriage Manufacturing Uses an Activity-Based Costing System Labor-Related Overhead Costs Assigned to Model 21 Are
A)$60,000

question 5

Multiple Choice

Carriage Manufacturing uses an activity-based costing system. The company produces Model 21 and Model 22. Information relating to the two products is as follows: $\begin{array}{lrr}&\text { Model 21 }&\text {Model 22 }\\\hline\text { Units produced } & 24,000 & 30,000 \\\text { Machine hours } & 7,500 & 8,500 \\\text { Direct labor hours } & 8,000 & 12,000 \\\text { Material handling (number of moves) } & 4,000 & 6,000 \\\text { Setups } & 5,000 & 7,000\\\text { The following costs are reported: }\\\\\text { Material handling } && \$ 40,000 \\\text { Labor-related overhead } && 120,000 \\\text { Setups } && 60,000\\\end{array}$ Labor-related overhead costs assigned to Model 21 are

• A)$60,000.
• B)$58,000.
• C)$54,400.
• D)$48,000.

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Definitions:

Naturalistic Observations

An observational research strategy where subjects are examined within their natural habitats without any intervention from the person observing.

Descriptive Method

A research method aimed at observing and describing the characteristics of a subject without influencing it.

Case Study

An in-depth investigation of a single individual or group to explore dynamics, behaviors, or conditions.

Correlational Research

A method of research that examines the relationships between variables, whereby a researcher observes or measures two or more variables to find associations between them.