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

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Definitions:

Nuclear Energy

Energy released during nuclear fission or fusion, especially when used to generate electricity.

Electricity

A form of energy resulting from the existence of charged particles such as electrons or protons, characterized by its ability to perform work, such as powering electrical devices.

BTUs

Stands for British Thermal Units, a unit of measure used to describe the heat value of fuels or energy sources.