Wilder Company Manufactures Two Models of Its Banjo, the Basic

question 61

Multiple Choice

Wilder 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 $84,600 of total inspecting costs this year.How much of the inspecting costs should be allocated to the Basic model using ABC costing?

• A)$21,150
• B)$30,600
• C)$42,300
• D)$71,910

---

Definitions:

Gallery

A collection or database of images, templates, or objects that can be used in various software applications for design or decorative purposes.

Rule

A principle or regulation established by an authority, governing behavior or the operation of a system.

Outlook

A personal information manager from Microsoft, featuring email, calendar, contact management, and task scheduling functionalities.

Command

An instruction given by a user to a computer program to perform a specific task.