Zang Manufacturing Company Manufactures Two Products (A and B) What Is the Allocation Rate Per Order Using ABC?
A)£10,000

question 16

Multiple Choice

Zang Manufacturing Company manufactures two products (A and B) . The overhead costs (£58,000) have been divided into three cost pools that use the following activity cost drivers: $\begin{array}{cccc}&&\text { Number of Labour }\\ \underline{\text { Product }}&\underline{\text { Number of Orders }} & \underline{\text { Transactions }} & \underline{ \text { Labour Hours }}\\\text { A } & 15 & 50 & 500 \\\text {B }& 10 & 150 & 2,000 \\& & & \\\text { Cost per pool } & £ 10,000 & £ 8,000 & £ 40,000\end{array}$
What is the allocation rate per order using ABC?

• A)£10,000
• B)£2,320
• C)£400
• D)£58,000

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Definitions:

Technical Skills

Abilities and knowledge needed to perform specific tasks, often related to computational and physical tasks or to operate machinery.

Active Listening

A communication technique that involves paying full attention, understanding, responding, and remembering what is being said.

Nonverbal Cues

Forms of communication without the use of spoken language, such as gestures, body language, facial expressions, and eye contact.

Eye Contact

The act of looking directly into another person's eyes, often used as a means of communication, to convey confidence or establish connection.