Use the Following Information to Answer Questions

question 57

Multiple Choice

Use the following information to answer questions
Sleep-Tight manufactures mattresses for the hotel industry.It has two products, Downy and Firm and total overhead of $504,000.The company plans to manufacture 200 Downy mattresses and 300 Firm mattresses this year.In manufacturing the mattresses, the company must perform 700 material moves for the Downy and 300 for the Firm; it processes 114 purchase orders for the Downy and 90 for the Firm; and the company's employees work 2,800 direct labour hours on the Downy product and 3,500 on the Firm.Sleep-Tight's total material handling costs are $300,000 and its total purchasing costs are $204,000.
-A relevant unit-level cost driver for a spa is:

• A)Advertising the offerings in the spa.
• B)Products used for facial care.
• C)Training of new staff.
• D)Hours patrons spend in the whirlpool.

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Definitions:

Total Number

The complete count or amount of items or units being considered.

Observations

Data points or individual pieces of data collected during an experiment or survey, used for analysis and conclusions.

Sample Means

are the average values calculated from a subset of a population.

Sum of Squares

A statistical measure used in various contexts, representing the sum of the squared differences between each observation and the overall mean.