Santiago Manufacturing Prices Its Products at Full Cost Plus 40

question 30

Multiple Choice

Santiago Manufacturing prices its products at full cost plus 40 percent. The company operates two support departments and two producing departments.Budgeted costs and normal activity levels are as follows: $$\begin{array} { | l | c | c | r | r | } \hline & { \text { Support Departments } } && { \text { Producing Departments } } \\\hline & \mathbf { A } & \mathbf { B } & \mathbf { C } & \mathbf { D } \\\hline \text { Overhead costs } & \$ 20,000 & \$ 50,000 & \$ 90,000 & \$ 120,000 \\\hline \text { Square feet } & 2,000 & 2,400 & 4,000 & 12,000 \\\hline \text { Number of employees } & 20 & 30 & 60 & 40 \\\hline \text { Direct labor hours } & - & - & 10,000 & 6,400 \\\hline \text { Machine hours } & - & - & 6,000 & 10,800 \\\hline\end{array}$$
Support Department A's costs are allocated based on square feet, and Support Department B's costs are allocated based on number of employees. Department C uses direct labor hours to assign overhead costs to products, while Department D uses machine hours.
One of the products the company produces requires 4 direct labor hours per unit in Department C and no time in Department D. Direct materials for the product cost $45 per unit, and direct labor is $20 per unit.
If the direct method of allocation is used and the company follows its usual pricing policy, the selling price of the product would be

• A)$102.00.
• B)$111.00.
• C)$115.00.
• D)$161.00.

Grasp the evolutionary basis of human sociality, including group membership and status evaluation.

Understand the unique evolutionary traits of humans, including culture, bipedalism, and brain development.

Apply concepts of evolution to explain biological and behavioral phenomena in both humans and other species.

Recognize various adaptations and their functions in coping with environmental challenges.

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Definitions:

Effective Compensation System

A pay structure designed to attract, retain, and motivate employees while supporting the strategic goals of an organization.

Company Success

The achievement of a business in meeting its goals and objectives, which can include profitability, growth, and market share.

Organizations

Organizations are structured groups of people who work together to achieve common goals or fulfill a specific function.

Major Components

Essential elements or parts that constitute the foundation or structure of a system, process, or object.