Carter Company Manufactures Two Models of Pens-A Standard and a Deluxe

question 56

Multiple Choice

Carter Company manufactures two models of pens-a standard and a deluxe model. Three activities have been identified as cost drivers and the related overhead costs ($60,000) pooled together to arrive at the following information: $\begin{array}{llll}& \text { Number of } & \text { Number of } & \text { Number of } \\\text { Product } & \text { Setups } & \text { Components } & \text { DLH }\\\text { Standard } & 22 & 8 & 375 \\\text { Deluxe } & 28 & 12 & 225 \\\text { Costs per pool } & \$ 15,000 & \$ 36,000 & \$ 9,000\end{array}$ is the total amount of overhead costs assigned to the deluxe model assuming traditional costing and applying overhead costs based on direct labor hours is used.

• A) $33,375
• B) $26,625
• C) $22,500
• D) $37,500

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Definitions:

Nail Root

The part of the nail located under the skin behind the fingernail or toenail, from which the nail grows.

Soft Keratin

A type of keratin that is more flexible and found in the epidermis of the skin, providing protection and moisture retention.

Digits

Fingers or toes in humans and other species, also used to describe numerical digits in mathematics and technology.

Stratum Corneum

The outermost layer of the epidermis, consisting of dead cells that form a tough, protective barrier.