Hammock Company Manufactures Two Models of Its Hammock, the Superior

question 35

Multiple Choice

Hammock Company manufactures two models of its hammock, the Superior and the Deluxe.The Superior model requires 10,000 direct labour hours and the Deluxe requires 40,000 direct labour hours.The company produces 4,000 units of the Superior model and 1,000 units of the Deluxe model each year.The company produces the Superior model in batch sizes of 200, while it produces the Deluxe model in batch sizes of 100.The company expects to incur $120,000 of total setup costs this year.How much of the setup costs are allocated to the Superior model using ABC costing?

• A)$80,000
• B)$60,000
• C)$24,000
• D)$100,000

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Definitions:

Percussion and Vibration

Techniques used in respiratory therapy involving tapping on the chest and vibrating the chest wall to loosen and mobilize secretions in the lungs.

Elevated

Refers to an increase or higher-than-normal level in medical or environmental contexts, such as elevated blood pressure or elevated terrain.

Acapella Device

A respiratory therapy tool designed to help patients clear mucus from the airways by providing vibration and resistance during exhalation.

Exhale Slowly

A breathing technique often advised to reduce stress or improve lung function, involving a controlled and gradual release of breath.