Use the Following Information to Answer Questions
Poodle Company

question 58

Multiple Choice

Use the following information to answer questions
Poodle Company manufactures two products, Mini A and Maxi B.Poodle's overhead costs consist of setting up machines, $800,000; machining, $2,000,000; and inspecting, $600,000.Information on the two products is:
$\begin{array}{lll}& \underline{\text { Mini A }}& \underline{\text { Maxi B}} \\\text { Direct labour hours } & 15,000 & 25,000 \\\text { Machine setups } & 600 & 400 \\\text { Machine hours } & 24,000 & 26,000 \\\text { Inspections } & 800 & 700\end{array}$

-Overhead applied to Maxi B using activity-based costing is

• A)$1,280,000.
• B)$1,640,000.
• C)$1,664,000.
• D)$2,125,000.

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Definitions:

Treasury Note

A medium-term government debt security with fixed interest rates and maturities typically between one and ten years.

Natural Resource

Assets that occur in nature, such as minerals, forests, water, and land, which can be utilized for economic benefit or commercial value.

Impaired Goodwill

A condition where the market value of goodwill, an intangible asset, falls below its recorded cost on the books, leading to a necessary write-down or adjustment.

Amortization

The process of spreading out a loan or intangible asset cost over a fixed period, affecting a company's financial statements.