National Inc

question 35

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,total overhead per unit of the High F model is (rounded to the nearest cent) :

• A)$42.61.
• B)$45.99.
• C)$61.32.
• D)$66.73.
• E)$168.00.

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Definitions:

Synthetic Fuels

Man-made substances created to mimic traditional fossil fuels, often produced from coal, natural gas, or biomass, and intended to be a less polluting energy source.

Lignite Coal

A soft brownish coal showing traces of plant structure, the lowest grade of coal due to its relatively low heat content.

Bituminous Coal

A type of coal noted for its relatively high energy and carbon content, used primarily for electricity generation and steel production.

Superinsulation

An approach to building design and construction that greatly increases thermal resistance, significantly reducing heating and cooling demands.