Zimmerman Company Manufactures Two Products, Board 12 and Case 165

question 143

Multiple Choice

Zimmerman Company manufactures two products, Board 12 and Case 165.Zimmerman's overhead costs consist of setting up machines, $2,400,000; machining, $5,400,000; and inspecting, $1,800,000.Information on the two products is: $$\begin{array} { l r r } & \text { Board 12 } & \text { Case 165 } \\\text { Direct labor hours } & 15,000 & 25,000 \\\text { Machine setups } & 600 & 400 \\\text { Machine hours } & 24,000 & 26,000 \\\text { Inspections } & 800 & 700\end{array}$$ Overhead applied to Case 165 using activity-based costing is

• A)$3,840,000.
• B)$4,608,000.
• C)$4,992,000.
• D)$6,000,000.

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Definitions:

Nachfrist

A german term used in contract law that refers to a grace period given to fulfill an obligation before a contractual breach is declared.

Concept

An abstract idea or general notion that represents something.

Buyer

A person or entity that purchases goods or services from another; the purchaser in a transaction.

Arbitration

A type of alternative dispute resolution wherein disputes are submitted for resolution to private non-official persons selected in a manner provided by law or the agreement of the parties.