Acton Company Has Two Products: a and B

question 62

Multiple Choice

Acton Company has two products: A and B. The annual production and sales of Product A is 800 units and of Product B is 500 units. The company has traditionally used direct labour hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labour hours per unit, and Product B requires 0.2 direct labour hours per unit. The total estimated overhead for next period is $92,023.

The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools-Activity 1, Activity 2, and General Factory-with estimated overhead costs and expected activity as follows:
(Note: The General Factory activity cost pool's costs are allocated on the basis of direct labour hours.)

-The overhead cost per unit of Product B under the traditional costing system is closest to which of the following?

• A) $2.63.
• B) $4.32.
• C) $7.49.
• D) $54.13.

Identify and explain economic concepts such as market failure, public goods, and external costs/benefits.

Recognize the role of government in managing economies, including the protection of property rights and the provision of public goods.

Compare and contrast different economic systems and theories, including capitalism and Marxism.

Analyze the effectiveness of command-and-control vs. incentive-based regulations in addressing environmental issues.

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Definitions:

Whole Sex

Encompassing all aspects of one's sexuality, including physical, emotional, and psychological dimensions, recognizing it as a complex and integral part of the human experience.

Department Chairpersons

Individuals who lead and manage academic departments within educational institutions.

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity, often considered in the context of social and cultural differences rather than biological ones.

Lower-level Position

A job or role within an organization that is lower in hierarchy, responsibility, or pay compared to other positions.