The Gardenview Corporation Has Identified the Following Overhead Costs and Activity

question 107

Multiple Choice

The Gardenview Corporation has identified the following overhead costs and activity drivers for next year: $$\begin{array}{l}\begin{array} { c c c c } \text { Overhead Item } & \begin{array} { c } \text { Expected } \\\text { Cost }\end{array} & \text { Activity Driver } & \begin{array} { c } \text { Expected } \\\text { Ouantity }\end{array} \\\hline \text { Setup costs } & \$ 200,000 & \text { Number of setups } & 250 \\\text { Ordering costs } & 80,000 & \text { Number of orders } & 1,600 \\\text { Maintenance } & 400,000 & \text { Machine hours } & 2,000 \\\text { Power } & 40,000 & \text { Kilowatt hours } & 40,000\end{array}\\\\\text { The following are two of the jobs completed during the year: }\\\begin{array} { l c c } & \text { Job 6A } & \text { Job 8B } \\\text { Direct materials } & \$ 3,000 & \$ 4,000 \\\text { Direct labor } & \$ 2,800 & \$ 4,800 \\\text { Units completed } & 100 & 160 \\\text { Direct labor hours } & 50 & 80 \\\text { Number of setups } & 1 & 4 \\\text { Number of orders } & 4 & 5 \\\text { Machine hours } & 20 & 25 \\\text { Kilowatt hours } & 30 & 50\end{array}\end{array}$$ The company's normal activity is 2,000 direct labor hours.
If the number of setups is used to assign setup costs, the amount of setup costs assigned to Job 6A would be

• A)$1,600.
• B)$1,000.
• C)$800.
• D)$1,680.

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Definitions:

Cutaneous Skin Layer

the outermost layer of the skin, known as the epidermis, which serves as a protective barrier against environmental threats.

Natural Immunity

The immunity one is born with, providing immediate protection from pathogens through physical barriers, like the skin, and innate immune responses.

Antibodies

Protein substances carried by cells to counteract the effect of an antigen.

Rabies

A viral disease affecting mammals, including humans, causing acute encephalitis and transmitted mainly through the bite of an infected animal.