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

question 40

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)$35,000
• B)$45,000
• C)$46,875
• D)$51,923

		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 materials handing cost allocated to projection TVs would be:

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Definitions:

Covered Interest Arbitrage

A strategy involving the investment in differing currencies in order to exploit differences in interest rates, while hedging exchange rate risk.

Uncovered Interest Parity

A theory in finance which posits that the disparity in interest rates across two nations matches the anticipated shift in exchange rates between their respective currencies.

International Fisher Effect

An economic theory predicting that the difference in nominal interest rates between two countries is equal to the expected change in their exchange rates over a specific period.

Relative Economic Conditions

Economic circumstances in one region or country as compared to another.