Younger, Inc

question 47

Multiple Choice

Younger, Inc. manufactures recliners for the hotel industry. It has two products, the Heater and the Massager, and total overhead is $3,160,000. The company plans to manufacture 400 Heaters and 100 Massagers this year. In manufacturing the recliners, the company must perform 600 material moves for the Heater and 400 for the Massager; it processes 900 purchase orders for the Heater and 700 for the Massager; and the company's employees work 1,400 direct labor hours on the Heater product and 3,400 on the Massager. Younger's total material handling costs are $2,000,000 and its total processing costs are $1,160,000. Using ABC, how much overhead would be assigned to the Heater product?

• A) $1,580,000
• B) $1,852,500
• C) $1,307,500
• D) $2,238,332

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Definitions:

Team

A group of individuals working together towards a common goal or objective.

Solve

The act of finding a solution to a problem or challenge.

Demote

The action of reducing someone's rank or position, usually as a disciplinary measure or organizational restructuring.

Lower-level Position

A job role that typically requires less experience and responsibility within the organizational hierarchy.