As a Community Service, the Local YWCA Runs Saturday Afternoon

question 170

Multiple Choice

As a community service, the local YWCA runs Saturday afternoon movies for children, charging 50 cents admission per child. The fixed costs are $100 per weekend for film rental and cleanup. The YWCA also sells candy, drinks, and popcorn with a variable cost ratio (variable costs divided by selling price) of 0.50. The average child buys $2.00 of junk food. What is the breakeven number of children?

• A)47 children
• B)52.3 children
• C)66.7 children
• D)73.5 children

Estimate manufacturing overhead using traditional and activity-based costing methods.

Apply activity-based costing principles to real-world manufacturing scenarios.

Understand the difference in overhead allocation between traditional costing and activity-based costing (ABC).

Calculate predetermined overhead rates using traditional costing methods.

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Definitions:

Integrative Thinking

A decision-making approach that involves considering various perspectives and contradictory information to generate creative and comprehensive solutions.

Cross-functional Teams

Teams composed of members from different functional areas within an organization, working together toward a common goal.

Functional Expertise

Specialized knowledge and skills within a specific field or area of professional practice.

Affinity Groups

Networks or clubs formed around a shared interest or common goal, often within a larger organization.