Aunt Lucy’s Candies
Aunt Lucy’s Candies Sells Standard and Premium

question 75

Multiple Choice

Aunt Lucy’s Candies
Aunt Lucy’s Candies sells standard and premium chocolate confectionary through its catalogue business. Many of the confectionary are sold in bulk to other companies. Last year, the company incurred $300 000 in overhead costs. After implementing activity-based costing (ABC) , the company’s controller identified the following information:
$$\begin{array} { l l c } \text { Activity } & \text { Allocation Base } & \text { Proportion of Overhead Cost } \\\hline \text { Purchasing } & \text { Number of purchase orders } & 30 \% \\\text { Processing } & \text { Number of units } & 50 \% \\\text { Sales } & \text { Number of sales orders } & 20 \%\end{array}$$
The number of activities for standard and premium confectionary is as follows:
$\begin{array}{lrr}&\underline{\text { Standard} } &\underline{ \text { Premium }} \\\text {Number of purchase orders}&4000& 2000 \\\text { Number of units }&200000 & 100000 \\\text {Number of sales orders}&3000 & 1000\end{array}$
-What is the overhead rate for the processing activity?

• A) $ .97
• B) $2.00
• C) $ .50
• D) $1.00

Propose actions to mitigate the impacts of global challenges such as increased carbon dioxide levels, including ecosystem management strategies.

Describe the concepts of primary and secondary production in ecosystems, including the roles of different trophic levels.

Explain the significance of energy flow and trophic efficiency in ecological communities, including the roles of primary producers and consumers.

Evaluate the role of didactic factor limitations on NPP across different ecosystems, including terrestrial and aquatic environments.

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Definitions:

Soybeans

A species of legume native to East Asia, widely grown for its edible bean which has numerous uses, including producing soy oil and soy protein.

Total Revenue

The total income generated from the sale of goods or services, calculated by multiplying the price by the quantity sold.

Demand Function

A mathematical equation that describes the relationship between the quantity of a good demanded and its price, as well as other factors like income and prices of related goods.

Price Elasticity

The ratio reflecting the responsiveness of the quantity demanded or supplied of a good to changes in its price.