Figure 3-4
Quint Manufacturing Uses an Activity-Based Costing System The Following Costs Are Reported

question 48

Multiple Choice

Figure 3-4
Quint Manufacturing uses an activity-based costing system. The company produces Model 1 and Model 2. Information relating to the two products is as follows: $$\begin{array} { l r r } \text { Units produced } & \text { Model 1 } & \text { Model } 2 \\\text { Machine hours } & 24,000 & 30,000 \\\text { Direct labour hours } & 7,500 & 8,500 \\\text { Material handling (number of moves) } & 8,000 & 12,000 \\\text { Setups } & 4,000 & 6,000 \\& 5,000 & 7,000\end{array}$$ The following costs are reported: $\begin{array}{lr}\text { Material handling } & £ 40,000 \\\text { Labour-related overhead } & 120,000 \\\text { Setups } & 60,000\end{array}$
-Refer to Figure 3-4. Setup costs assigned to Model 2 are

• A)£36,000.
• B)£35,000.
• C)£28,000.
• D)£25,000.

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Definitions:

Fixed Interval

A reinforcement schedule that rewards the first response following the passage of a specified time interval.

Variable Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, leading to a steady rate of response.

Fixed Ratio

In operant conditioning, a schedule of reinforcement where a response is reinforced only after a specified number of responses.

Latent Learning

Latent learning is the subconscious retention of information without reinforcement or immediate application, which becomes evident when a specific situation triggers it.