One of Astro Fireworks Company's Activity Cost Pools Is Machine

question 27

Multiple Choice

One of Astro Fireworks Company's activity cost pools is machine setups, with estimated overhead of $200,000.Astro produces sparklers (75 setups) and lighters (25 setups) .How much of the machine setup cost pool should be assigned to sparklers?

• A)$50,000
• B)$150,000
• C)$166,666
• D)$200,000

---

Definitions:

Total Tax Collection

The cumulative sum of taxes collected by a government from individuals and businesses within a specific timeframe.

Excise Tax

A tax charged on specific goods and services, such as gasoline, cigarettes, and alcohol, typically imposed at the manufacturing or production level.

Supply Curve

A graph showing the relationship between the price of a good and the amount of the good that producers are willing to supply.

Before-tax

Financial figures or income amounts that have not had taxes deducted.