Ellis Company Ellis Company Uses Activity-Based Costing.The Company Produces Two Products: IPods

question 10

Multiple Choice

Ellis Company
Ellis Company uses activity-based costing.The company produces two products: IPods and MP3 players.The annual production and sales volume of IPods is 8,000 units and of MP3 players is 6,000 units.There are three activity cost pools with the following expected activities and estimated total costs:

• A)$ 2.40
• B)$ 3.90
• C)$ 6.60
• D)$10.59

Activity Cost Pool	Estimated Cost	Expected Activity IPods	Expected Activity MP3 players	Total
Activity 1	$20,000	100	400	500
Activity 2	$37,000	800	200	1,000
Activity 3	$91,200	800	3,000	3,800

Refer to Ellis Company.Using ABC,the cost per unit of IPods is approximately:

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Definitions:

Receptor

A protein molecule on the cell surface or within a cell that binds to specific molecules, such as hormones or neurotransmitters, triggering a specific cellular response.

Set Point

A term referring to the ideal value or range of values for a physiological parameter that the body tries to maintain through homeostasis.

Retroperitoneal Organs

Retroperitoneal organs are those located behind the peritoneal cavity, including the kidneys, pancreas, and parts of the intestines.

Visceral Peritoneum

The visceral peritoneum is a membrane that covers the external surfaces of most internal organs within the abdominal cavity, providing support and allowing frictionless movement.