One of Stine Company's Activity Cost Pools Is Machine Setups

question 53

Multiple Choice

One of Stine Company's activity cost pools is machine setups, with estimated overhead of $360,000. Stine produces sparklers (400 setups) and lighters (600 setups) . How much of the machine setup cost pool should be assigned to sparklers?

• A) $360,000
• B) $144,000
• C) $180,000
• D) $216,000

---

Definitions:

Integrity

The quality of being honest and having strong moral principles; moral uprightness.

Job Evaluation System

A methodical process used by organizations to determine the relative value or complexity of job roles for the purpose of establishing fair pay rates.

Excessive Overlaps

Situations in which responsibilities, activities, or areas of operation between roles or projects significantly overlap, leading to inefficiency or conflict.

Compensable Factor

Elements or aspects of a job that are used to determine its value and thereby influence the compensation provided for that job.