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.

---

Definitions:

Potassium

An essential mineral and electrolyte in the human body that is crucial for the function of nerve and muscle cells, including the heart.

Respiratory Distress

A critical, often life-threatening condition where an individual experiences severe difficulty in breathing, requiring immediate medical attention.

Arterial Blood Gases

A test that measures the levels of oxygen, carbon dioxide, and blood pH to assess lung function and how well the lungs are able to move oxygen into the blood and remove carbon dioxide.

Compensation

Remuneration or payment received by employees for their labor or services, often including wages, salaries, benefits, and bonuses.