Hale Company Manufactures Two Models of Its Couch, the Mini

question 125

Multiple Choice

Hale Company manufactures two models of its couch, the Mini and the Maxi. The Mini model requires 10,000 direct labor hours and the Maxi model requires 40,000 direct labor hours. The company produces 4,000 units of the Mini model and 1,000 units of the Maxi model each year. The company produces the Mini model in batch sizes of 200, while it produces the Maxi model in batch sizes of 100. The company expects to incur $360,000 of total setup costs this year. How much of the setup costs are allocated to the Mini model using ABC costing?

• A) $240,000
• B) $180,000
• C) $72,000
• D) $300,000

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Definitions:

Nonverbal Messages

Communication cues transmitted without words, such as gestures, facial expressions, and body language.

Sending

The act of transmitting information or messages from one person or entity to another.

Receiving

Receiving in communication refers to the process by which an individual perceives and interprets information from a sender.

Self-worth

Self-worth is the value a person assigns to themselves, based on their own beliefs and perceptions about their worthiness and competence.