Ultimate Vision Corporation Ultimate Vision Corporation Has Two Product Lines: LCD Televisions and LCD

question 163

Multiple Choice

Ultimate Vision Corporation
Ultimate Vision Corporation has two product lines: LCD televisions and projection televisions.The company has budgeted the following production and overhead costs for the upcoming year:

• A)$51,923
• B)$55,385
• C)$69,231
• D)$72,000

		LCD TV’s	Projection TV’s
Units Produced		1,500	2,250
Direct labor hours per Unit		20	30
Material Moves per Product Line		15	20
Budgeted Materials Handling Cost	$75,000
Total Machine Hours		10,000	16,000
Machine Maintenance Costs	$180,000

Refer to Ultimate Vision Corporation.If the company uses total direct labor hours to allocate factory overhead,the machine maintenance cost allocated to LCD TV's would be:

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Definitions:

Dumping

The selling abroad of goods at prices lower than the prices of the goods sold domestically in the country of origin.

Special Import Measures Act

Legislation designed to protect Canadian industries from unfair trade practices like dumping and subsidizing.

Customs Tariff Act

Legislation that outlines the taxes or duties to be paid on imported or exported goods.

Foreign Branch Plant

A subsidiary production or service facility of a company located in another country from the parent company.