Quick Start Engines Has Two Departments, Assembly and Testing $\text { The above activities are used by the two departments as follows: }$

question 71

Multiple Choice

Quick Start Engines has two departments, Assembly and Testing. You are given the following information about the costs of 5 activities that occur at the manufacturing plant monthly: $\begin{array}{lrl}\text { Activity } &\text {Total Costs } &\text { Volume of Cost Driver }\\\hline\text { Material handling } & \$ 100,000 & 200,000 \text { parts } \\\text { Supervision of direct labour } & 105,000 & 70 \text { employees } \\\text { Janitorial and cleaning } & 150,000 & 3,000 \text { hours } \\\text { Machining } & 240,000 & 6,000 \text { machine hours } \\\text { Total costs } & \$595,000 &\end{array}$

$\text { The above activities are used by the two departments as follows: }$
$\begin{array}{lll}&\text { Assembly }&\text {Testing }\\\hline\text { Material handling } & 150,000 \text { parts } & 50,000 \text { parts } \\\text { Supervision of direct labour } & 30 \text { employees } & 40 \text { employees } \\\text { Time spent cleaning } & 2,000 \text { hours } & 1,000 \text { hours } \\\text { Number of machine hours } & 4,000 \text { machine hours } 2,000 \text { machine hours }\end{array}$ What is the ABC allocation rate for supervision of direct labour?

• A) $3,500 per employee
• B) $1,500 per employee
• C) $0.50 per part
• D) $50 per hour spent in supervision

---

Definitions:

Evolutionary Relationships

The connections among species or groups of organisms that arise from a common ancestor, elucidated through the study of physical characteristics, genetics, and comparative anatomy.

Classifying Organisms

The scientific practice of organizing and categorizing living organisms into groups based on shared characteristics.

Systematics

The examination of organism diversity and their ancestral connections through scientific methods.

Diversity

The range of different species, genetic variations, or ecosystems present in an area, often considered a measure of its biological richness.