A Firm Produces and Sells Two Products,Mica and Plax

question 106

Multiple Choice

A firm produces and sells two products,Mica and Plax.The following information is available relating to setup costs (a part of factory overhead) :
With traditional two-stage allocation of overhead costs,using direct labor hours as the allocation base,the setup cost portion of overhead that is allocated to each unit of product for Mica and Plax,respectively is:

• A)$.80; $.80.
• B)$3.20; $3.20.
• C)$4.00; $4.00.
• D)$160.00; $12,800.00.
• E)$200.00; $16,000.00.

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Definitions:

Global Markets

The international economic system of trade and investment, where goods, services, and capital flow across borders.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and rights to dividends or profits.

Financialization

The escalating relevance of financial markets, financial reasons, financial bodies, and financial upper echelons in the functioning of the economy and its administrative institutions.

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