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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Conceptual Variables

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Spatial Reasoning

The ability to understand and remember the spatial relations among objects, often tested through puzzles and visual-spatial tasks.

Classical Music

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