Exhibit 17-3 Bird's Eye View Manufactures Three Different Sizes of Bird

question 15

Multiple Choice

Exhibit 17-3 Bird's Eye View manufactures three different sizes of bird cages: small (for finches and canaries) , medium (for cockatiels and small parrots) , and large (for cockatoos and other large parrots) . The company has recently implemented an activity-based costing system. Bird's Eye View 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 bird cage and next year's anticipated manufacturing operations:

-Refer to Exhibit 17-3. What is Bird's Eye View cost per cost driver for automated processing for next year (rounded) ?

• A) $4.23 per part
• B) $10.36 per part
• C) $14.29 per part
• D) $29.63 per part

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Definitions:

Split-Off Point

The stage in a production process where joint products can be recognized as separate products, each with its identifiable characteristics and value.

Performance Report

A document that outlines the financial or operational performance of a company over a specific period.

Department Allocations

The process of distributing overhead costs to different departments based on relevant allocation bases.

Allocate

The process of distributing resources or assigning costs to different departments, projects, or cost centers within an organization.