Johnstone Company Manufactures Two Products, Board 12 and Case 165

question 63

Multiple Choice

Johnstone Company manufactures two products, Board 12 and Case 165.Johnstone's overhead costs consist of setting up machines, $1,600,000; machining, $3,600,000; and inspecting, $1,200,000.Information on the two products is: $\begin{array}{lrr}&\text { Board 12 }&\text { Case 165 }\\\text { Direct labor hours } & 15,000 & 25,000 \\\text { Machine setups } & 600 & 400 \\\text { Machine hours } & 24,000 & 26,000 \\\text { Inspections } & 800 & 700\end{array}$
-Overhead applied to Board 12 using activity-based costing is

• A)$2,400,000.
• B)$3,072,000.
• C)$3,328,000.
• D)$3,840,000.

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Definitions:

Violent Crime

Acts of crime that involve force or the threat of force against others, including murder, assault, and robbery.

Potential For Violence

The likelihood or capacity of a person or situation to result in physical harm or aggressive behavior.

Thrill Of Violence

The excitement or rush some individuals feel when engaging in or witnessing acts of violence.