Watson's Computer Company Uses ABC to Account for Its Manufacturing

question 117

Multiple Choice

Watson's Computer Company uses ABC to account for its manufacturing process. Watson's Computer Company expects to produce 2,250 computers. Watson's Computer Company also expects to use 13,000 parts and have 20 setups.
The allocation rate for machine setups is

• A)$7.01.
• B)$1,500.
• C)$488.
• D)$765.

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Definitions:

Workers' Pay

Compensation or salary received by employees for their labor or services provided to an employer.

Corporate Behavior

The actions, reactions, and interactions of a corporation with its stakeholders, governed by its culture, ethics, and governance practices.

Stockholders

Individuals or entities that own one or more shares of stock in a public or private corporation, which represents a share in its ownership.

Market Pressures

The forces exerted by supply and demand within a marketplace that influence business decisions, product pricing, and economic policies.