Use the Following Information for the Next 4 Questions

question 49

Multiple Choice

Use the following information for the next 4 questions.
Quick Start Engines has two departments, Assembly and Testing. You are given the following information about the costs of 5 activities that occur at the manufacturing plant monthly: (continued on the next page)
The above activities are used by the two departments as follows:
-How much of the material handling cost will be allocated to Assembly?

• A) $75,000
• B) $25,000
• C) $66,667
• D) $33,333

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Definitions:

Consumer Surplus

The divergence between the total price consumers are willing and able to contribute towards a good or service and the total price they actually contribute.

Japanese Government

The national government of Japan, characterized by a constitutional monarchy and a parliamentary government.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the amount they actually receive.

Tariff

A tax imposed by a government on goods and services imported from other countries to protect domestic industries.