North Street Corporation Manufactures Two Models of Motorized Go-Carts, a Standard

question 138

Multiple Choice

North Street Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled:

Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead cost assigned to the standard model? (Do not round interim calculations. Round the final answer to the nearest whole dollar.)

• A) $18,475
• B) $11,500
• C) $19,750
• D) $25,450

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Definitions:

Tokenism

The practice of publicly making small concessions to a minority group in order to deflect accusations of prejudice and discrimination.

Token of Good Faith

An action or item provided to show sincerity and intention to engage in a deal or relationship honestly.

Scapegoat

Individual or group that becomes the target for anger and frustration caused by a different individual or group or some other set of circumstances.

Frustration-Aggression Hypothesis

A psychological theory proposing that aggression is often the result of blocking, or frustrating, a person's efforts to attain a goal.