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

question 5

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 medium cage (rounded) ?

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

---

Definitions:

Information Technology

The use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

Systematic Research Anchor

A principle or approach in management research that emphasizes rigor, scientific methods, and empirical evidence.

Qualitative Data

Non-numeric information that is used to describe attributes, properties, or characteristics of objects or events.

Workforce Diversity

The inclusion of a wide range of differences among employees in an organization, including race, gender, age, and cultural background.