Reference: 05-01
Acton Company Has Two Products: a and B

question 26

Multiple Choice

Reference: 05-01
Acton Company has two products: A and B. The annual production and sales of Product A are 800 units and of Product B are 500 units. The company has traditionally used direct labour-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labour-hours per unit and Product B requires
0.2 direct labour-hours per unit. The total estimated overhead for next period is $92,023.
The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools-Activity 1, Activity 2, and General Factory-with estimated overhead costs and expected activity as
follows: $$\begin{array} { | l | l | l | l | l | } \hline \text { Activity } & & { \text { Expected Activity } } \\\hline \text { Cost Pool } & \begin{array} { l } \text { Estimated } \\\text { Overhead } \\\text { Costs }\end{array} & \text { Product A } & \text { Product B } & \text { Total } \\\hline \text { Activity 1 } & \$ 14,487 & 500 & 600 & 1,100 \\\hline \text { Activity 2 } & \$ 64,800 & 2,500 & 500 & 3,000 \\\hline \text { General Factory } & \$ 12,736 & 240 & 100 & 340 \\\hline \text { Total } & \$ 92,023 & & & \\\hline\end{array}$$ (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labour-hours.)
-The overhead cost per unit of Product A under the activity-based costing system is closest to:

• A)$11.24.
• B)$86.97.
• C)$70.79.
• D)$81.20.

Recognize the role and functions of English courts of equity.

Identify and explain the essential functions of law.

Describe the system of law in the United States including its formation and sources.

Define the doctrine of stare decisis and its impact on the legal system.

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Definitions:

Support Networks

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Polarized Crowds

Groups of individuals divided in opinion, often leading to intense disagreement and lack of consensus on a subject.

Pew Research Center

A nonpartisan fact tank that provides information on social issues, public opinion, and demographic trends shaping the world.

Social Norms

Implicit rules or guidelines within a society or group that dictate acceptable behaviors, values, and beliefs.