Sheen CoManufacturers Laser Printers

question 90

Multiple Choice

Sheen Co.manufacturers laser printers.It has outlined the following overhead cost drivers:
Sheen Co.has an order for 1,000 laser printers that has the following production requirements:
Using activity-based costing,applied materials handling factory overhead for the 1000 laser printer order is:

• A)$7,800.
• B)$10,000.
• C)$10,500.
• D)$150.
• E)$21,600.

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Definitions:

Depreciation

A method of allocating the cost of a tangible or physical asset over its useful life.

Sales

The activity or business of selling goods or services.

Minimum Bid Price

The lowest price at which a seller is willing to sell an asset in an auction or market.

Capital Cost Allowance (CCA)

A tax deduction in Canada that allows businesses to claim a depreciation expense for the use of certain types of property.