Exhibit 17-2 BigView Monitors Manufactures Three Different Sizes of Computer

question 10

Multiple Choice

Exhibit 17-2 BigView Monitors manufactures three different sizes of computer monitors: 15-inch, 17-inch, and 20-inch. The company has recently implemented an activity-based costing system. BigView has identified five different production activities as well as the best cost driver for each activity. Each activity and driver is listed below, along with the budgeted amount that is associated with each activity for next year.
The following information relates to each size of monitor and next year's anticipated manufacturing operations:

-Refer to Exhibit 17-2. What is BigView's cost per cost driver for testing for next year (rounded) ?

• A) $1.33 per labor hour
• B) $3.40 per labor hour
• C) $3.58 per labor hour
• D) $6.80 per labor hour

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Definitions:

Hemianopia

A vision disorder characterized by a loss of vision or blindness in half the visual field, usually resulting from damage to the brain or optic pathways.

Macula Lutea

A small, yellowish central area of the retina that is rich in cones and where visual acuity is highest.

Fovea Centralis

A small depression in the retina where visual acuity is highest.

Optic Disk

The spot in the eye where the optic nerve meets the retina, sometimes referred to as the blind spot.