Dawson Company Manufactures Two Products, Regular and Deluxe

question 60

Multiple Choice

Dawson Company manufactures two products, Regular and Deluxe.Overhead costs consist of machining, $2,500,000; and assembly, $1,250,000.Recent data are provided below: Overhead allocated to Regular using a single overhead rate (based on number of parts) and using activity-based costing, respectively, are

• A)$2,400,000 and $2,625,000.
• B)$937,500 and $2,812,500.
• C)$1,350,000 and $1,125,000.
• D)$1,075,000 and $2,675,000.

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Definitions:

Balanced Budget

A Balanced Budget occurs when total revenues equal total expenses within a specific period, indicating financial stability without surplus or deficit.

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and progressive taxes, designed to automatically adjust in response to economic conditions and stabilize the economy.

Business Cycle

The economic fluctuations experienced over time, characterized by periods of expansion (growth) and contraction (recession) in economic activity.

Legislative Action

The process by which a legislative body takes official steps to introduce, amend, pass, or reject laws and regulations.