Riley, SA, Has Identified the Following Overhead Costs and Activity Drivers

question 30

Multiple Choice

Riley, SA., has identified the following overhead costs and activity drivers for next year: $\begin{array}{lclc}\text { Expected }&&\text { Expected }\\\text { Overhead Item }&\text { Cost } & \text { Activity Driver } & \text { Quantity }\\\text { Setup costs } & £ 100,000 & \text { Number of setups } & 500 \\\text { Ordering costs } & 40,000 & \text { Number of orders } & 3,200 \\\text { Maintenance } & 200,000 & \text { Machine hours } & 4,000 \\\text { Power } & 20,000 & \text { Kilowatt hours } & 80,000\end{array}$ The following are two of the jobs completed during the year: $\begin{array}{lll}&\mathrm{Job} \text { AA} &\mathrm{Job} \text { BB }\\\text { Direct materials } & £ 375 & £ 1,000 \\\text { Direct labour } & £ 350 & £ 1,200 \\\text { Units completed } & 100 & 160 \\\text { Direct labour hours } & 50 & 80 \\\text { Number of setups } & 1 & 4 \\\text { Number of orders } & 4 & 5 \\\text { Machine hours } & 20 & 25 \\\text { Kilowatt hours } & 30 & 50\end{array}$ The company's normal activity is 4,000 direct labour hours. If the activity drivers are used to allocate overhead costs, the unit cost (rounded to two decimal places) for Job BB would be

• A)£21.40.
• B)£26.56.
• C)£26.95.
• D)£27.03.

Recall the important functions of the skin and its significant role in body weight.

Recognize symptoms and manifestations of various skin infections and conditions.

Identify effective treatments and preventive measures for skin conditions.

Understand the relationship between skin health and aging.

---

Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage.

Demand Function

A mathematical representation that describes the quantity of a good or service consumers are willing and able to purchase at various prices.

Tickets

Documents that grant the holder the right to enter an event, travel on a vehicle, or participate in an activity.

Price Elasticity

Measures the responsiveness of quantity demanded or supplied of a good to a change in its price, with elasticity types including elastic, inelastic, and unitary.