Figure 11-1
Ubben Manufacturing Uses an Activity-Based Costing System The Following Costs Are Reported

question 53

Multiple Choice

Figure 11-1
Ubben Manufacturing uses an activity-based costing system. The company produces Model X and Model Y. Information relating to the two products is as follows: $\begin{array}{lll}&\text { Model X } & \text { Model Y } \\\text { Units produced } & 20,000 & 40,000 \\\text { Machine hours } & 8,000 & 10,000 \\\text { Direct labour hours } & 14,000 & 16,000 \\\text { Engineering labour (hours) } & 1,000 & 1,400 \\\text { Setups } & 40 & 60\end{array}$ The following costs are reported: $\begin{array}{ll}\text { Engineering } & £ 48,000 \\\text { Setups } & 100,000 \\\text { Machine-rel ated overhead } & 144,000\end{array}$
-Refer to Figure 11-1. Setups would be classified as a

• A)unit-level activity.
• B)batch-level activity.
• C)product-level activity.
• D)facility-level activity.

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