Attraction Corporation Produces Specially Machined Parts The Costs of Facility-Level Activities Are Assigned Using Machine Hours

question 90

Multiple Choice

Attraction Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications) . Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. In addition, there is a sustaining process with two activities: providing utilities (plantwide) and providing space. Costs have been assigned to each activity using direct tracing and resource drivers: $$\begin{array}{l}\begin{array} { l r } \text { Engineering } & \$ 1,000,000 \\\text { Setups } & 900,000 \\\text { Machining } & 2,000,000 \\\text { Inspection } & 800,000 \\\text { Providing space } & 250,000 \\\text { Providing utilities } & 180,000\end{array}\\\text { Activity drivers for each activity have been identified and their practical capacities listed: }\\\begin{array} { l r } \text { Machine hours } & 25,000 \\\text { Setups } & 200 \\\text { Engineering hours } & 5,000 \\\text { Inspection hours } & 2,500\end{array}\end{array}$$ The costs of facility-level activities are assigned using machine hours.
What is (are) the unit-level activity(ies) ?

• A)engineering
• B)setups
• C)providing space
• D)machining

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Definitions:

Chunk

A cognitive unit of information organized or grouped together, often used as a strategy to improve memory retention.

Nonsense Syllable

A string of letters that does not follow the rules of grammar or language and has no meaning, often used in memory and learning experiments.

Mnemonic Device

A technique that aids in remembering information by associating it with easily remembered words, phrases, or images.

Memory Traces

Hypothetical biological substrates that represent the physical manifestation of memories.