One of Astro Fireworks Company's Activity Cost Pools Is Machine

question 27

Multiple Choice

One of Astro Fireworks Company's activity cost pools is machine setups, with estimated overhead of $200,000.Astro produces sparklers (75 setups) and lighters (25 setups) .How much of the machine setup cost pool should be assigned to sparklers?

• A)$50,000
• B)$150,000
• C)$166,666
• D)$200,000

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Definitions:

Import Quota

A government-imposed limit on the quantity of a certain good that can be imported into the country over a specified period.

Tax On Imports

A financial charge imposed by a government on goods imported into a country to regulate trade and raise revenue.

Export Restriction

Export restriction is a policy imposed by governments to limit or control the export of certain goods, services, or technology, often for political, economic, or environmental reasons.

Nontariff Barrier

Refers to any restriction, other than tariffs, that is used by countries to control the amount of trade across their borders, including quotas, embargoes, or regulations.