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

question 44

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. Under an activity-based costing system, what is the per unit cost for manufacturing overhead of a small cage (rounded) ?

• A) $100
• B) $119
• C) $120
• D) $151

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Definitions:

Priority Level

The designated importance or urgency assigned to a task, project, or process, determining the order in which tasks should be addressed.

Deferred

Postponed or delayed to a later time or date.

Detailed View

A presentation or display mode that shows in-depth information, often with more complexity and detail than an overview.

Categories

Groupings or classifications into which items, information, or concepts are organized based on shared characteristics or criteria.