Noland Company Manufactures Two Models of Its Banjo, the Basic

question 143

Multiple Choice

Noland Company manufactures two models of its banjo, the Basic and the Luxury. The Basic model requires 10,000 direct labor hours and the Luxury requires 30,000 direct labor hours. The company produces 3,400 units of the Basic model and 600 units of the Luxury model each year. The company inspects one Basic for every 100 produced, and inspects one Luxury for every 10 produced. The company expects to incur $112,800 of total inspecting costs this year. How much of the inspecting costs should be allocated to the Basic model using ABC costing?

• A) $28,200
• B) $40,800
• C) $56,400
• D) $95,880

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Definitions:

Motor Neurons

Nerve cells that initiate and control the movement of muscles by transmitting impulses from the brain or spinal cord to the muscles.

Maturation Process

The natural growth or progress through stages of development in physical, intellectual, or emotional capacities.

Brain Growth Spurt

A period of rapid neural development, typically occurring in early childhood and adolescence.

Prenatal Development

The process of growth and development within the womb, from conception to birth, divided into the germinal, embryonic, and fetal stages.