Austin Company Manufactures 2 Products, Flacca and Gordo

question 138

Multiple Choice

Austin Company manufactures 2 products, Flacca and Gordo.Overhead costs are comprised of machine set-ups $1,600,000; machining $3,600,000; and inspecting $1,200,000.Recent data are shown below: Overhead assigned to Flacca using a single overhead rate based on direct labor hours and using ABC, respectively, will be

• A)$4,000,000 and $2,400,000.
• B)$4,000,000 and $3,072,000.
• C)$2,400,000 and $3,328,000.
• D)$2,400,000 and $3,072,000.

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Definitions:

Muscle Tissue

Muscle tissue is a specialized tissue in animals designed to contract and produce force and movement.

Epithelial Tissues

Layers of cells that cover internal and external surfaces of the body, including skin, glands, and lining of organs, serving as protective barriers and involved in absorption and secretion.

Basement Membrane

The thin, non-cell layer of an epithelial membrane that attaches to the underlying tissues; consists of tiny fibers and polysaccharides produced by the epithelial cells.

Hypothalamus

A region of the brain responsible for hormonal secretion that influences growth, metabolism, temperature regulation, and many other vital bodily functions.