National Inc

question 71

Multiple Choice

National Inc.manufactures two models of CMD that can be used as cell phones,MPX,and digital camcorders.
National uses a volume-based costing system to apply factory overhead based on direct labor dollars.The unit prime costs of each product were as follows:
National's controller had been researching activity-based costing and decided to switch to it.A special study determined National's two products have the following budgeted activities:
Using activity-based costing,applied machinery overhead for the High F model per unit is (rounded to the nearest cent) :

• A)$6.13.
• B)$11.86.
• C)$16.28.
• D)$32.46.
• E)$66.73.

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Definitions:

Wine-Drinking Countries

Nations where wine consumption is a significant part of the culture and diet, often associated with certain health benefits.

Beer-Drinking Countries

Nations where consumption of beer is a significant part of the culture and may have high per capita beer consumption rates.

Distilled Beverages

Alcoholic drinks produced by distilling fermented grain, fruit, or vegetables, which include vodka, whiskey, rum, and gin.

Intoxication

A state resulting from the ingestion of substances (like alcohol or drugs) that impair mental or physical capabilities.