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

question 60

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: $\begin{array}{lrl}\text { Activity } &\text {Total Costs } &\text { Volume of Cost Driver }\\\hline\text { Material handling } & \$ 100,000 & 200,000 \text { parts } \\\text { Supervision of direct labour } & 105,000 & 70 \text { employees } \\\text { Janitorial and cleaning } & 150,000 & 3,000 \text { hours } \\\text { Machining } & 240,000 & 6,000 \text { machine hours } \\\text { Total costs } & \$595,000 &\end{array}$

$\text { The above activities are used by the two departments as follows: }$
$\begin{array}{lll}&\text { Assembly }&\text {Testing }\\\hline\text { Material handling } & 150,000 \text { parts } & 50,000 \text { parts } \\\text { Supervision of direct labour } & 30 \text { employees } & 40 \text { employees } \\\text { Time spent cleaning } & 2,000 \text { hours } & 1,000 \text { hours } \\\text { Number of machine hours } & 4,000 \text { machine hours } 2,000 \text { machine hours }\end{array}$ How much of the total activity costs will be allocated to Assembly?

• A) $300,000
• B) $275,000
• C) $380,000
• D) $350,000

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Definitions:

Equipment Manual

A document that provides instructions for the setup, use, and maintenance of machinery or equipment.

Maintaining

The act of keeping something in good condition by conducting regular checks, repairs, and necessary updates to prevent deterioration.

Stocking Shelves

The process of organizing and replenishing goods in a retail environment to ensure products are available for customers.

Rotate

The act of turning or spinning on an axis.