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

question 157

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 number of units produced to allocate factory overhead,the machine maintenance cost allocated to LCD TVs would be:

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Definitions:

Marginal Cost

The additional expense incurred from producing one more unit of a good or service, which is crucial for decision-making in production and pricing.

Tennessee Valley Authority

a U.S. government agency established in 1933 to address a wide range of environmental, economic, and technological issues in the Tennessee Valley region.

Government Owned

Entities or assets that are owned, controlled, or operated by the government or a public authority.

Peak Efficiency

Peak efficiency is the maximum operational effectiveness where a process or system operates at its highest level of productivity with minimal waste.