Use the Following Information for the Next 2 Questions

question 68

Multiple Choice

Use the following information for the next 2 questions.
Flowing Wells Corporation is preparing its annual budget. As part of its analysis of the contribution of individual products to overall profitability, the controller estimates the amount of overhead that should be assigned to the individual product lines. Budgeted inspection costs are $4,800. Additional information is as follows:
-Under a traditional costing system that assigns overhead on the basis of direct labor hours, the inspection costs allocated to one small pump would be

• A) $10
• B) $15
• C) $20
• D) $24

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Definitions:

Cold Drinks

Beverages that are served chilled, often including sodas, iced teas, and various types of juices.

Temperature

A physical quantity expressing the subjective perceptions of hot and cold, measured by a thermometer.

Increased

A term denoting a situation or quantity that has grown or become larger or greater in size, volume, number, or degree.

Negatively Related

A term describing two variables that move in opposite directions, where an increase in one leads to a decrease in the other.