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

question 145

Multiple Choice

Rowan 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 ($70,000) pooled together to arrive at the following information: $$\begin{array} { l l l l } \text { Product } & \begin{array} { l } \text { Number of } \\\text { Setups }\end{array} & \begin{array} { l } \text { Number of } \\\text { Components }\end{array} & \begin{array} { l } \text { Number of } \\\text { DLH }\end{array} \\\text { Standard } & \mathbf{2 0} & \mathbf{1 5} & 375 \\\text { Deluxe } & 30 & 45 & 225 \\\text { Costs per pool } & \$ 25,000 & \$ 36,000 & \$ 9,000\end{array}$$ If activity- based costing is used, is the pool overhead rate per direct labor hour.

• A) $117
• B) $150
• C) $15
• D) $50

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Definitions:

Invader Species

Organisms introduced to a new habitat where they proliferate and can outcompete native species, also known as invasive species.

Invader Species

Non-native species introduced to a new environment where they often outcompete native species for resources, sometimes leading to environmental imbalances and biodiversity loss.

Successful

Achieving a desired goal or outcome through effective actions or strategies; often associated with positive results in various contexts like business, personal development, or academic achievements.

Characteristics

Distinctive features or qualities that define an individual, species, or object.