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

question 43

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 inspections for next year (rounded) ?

• A) $1.18 per part
• B) $3.58 per part
• C) $10.74 per part
• D) $11.48 per part

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Definitions:

Fixed Exchange Rates

A government or central bank policy setting the value of its currency in relation to another currency or a basket of currencies.

Consolidated Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as a single entity.

Future Date

A specific day in the future, identified for the occurrence of a particular event or for the completion of a specified task or agreement.

U.S. Dollars

The authorized fiscal medium of the United States, extensively employed as a reference and backup currency all over the world.