Wake Construction
Wake Construction Manufactures and Installs Standard and Custom-Made

question 6

Multiple Choice

Wake Construction
Wake Construction manufactures and installs standard and custom-made cabinetry for residential homes. Last year, the company incurred $200 000 in overhead costs. After implementing activity-based costing (ABC) , the company’s accountant identified the following related information:
$$\begin{array}{l}\begin{array} { l l c } &&\text { Proportion }\\\text { Activity } & \text { Allocation Base } & \text { of Overhead Cost } \\\hline \text { Material delivery and handling } & \text { Number of deliveries } & 30 \% \\\text { Inspections } & \text { Number of inspections } & 25 \% \\\text { Supervision } & \text { Hours of supervisor time } & 20 \% \\\text { Purchasing } & \text { Number of purchase orders } & 25 \%\end{array}\end{array}$$
The number of activities for standard and custom-made cabinets is as follows:
$\begin{array}{lrr}&\underline{\text { Standard }} &\underline{\text { Custom-made }} \\\text {Number of deliveries }&200 & 100 \\\text {Number of inspections }&600 & 400 \\\text {Hours of supervisor time }&1800 & 2200 \\\text {Number of purchase orders}&1000 & 1000\end{array}$

During the past year, Wake accepted a customer order for a set of custom-made cabinets that would require the following:
$\begin{array}{lr}\text { Direct labour cost ( } 25 \text { hours at } \$ 15 \text { per hour) } & \$ 75 \\\text { Direct materials (wood) ( } 900 \mathrm{ft} \text { at } \$ 3.00 \text { per foot) } & \$ 2700 \\\text { Number of deliveries } & 3 \\\text { Number of inspections } & 5 \\\text { Hours of supervisor time } & 3\end{array}$
-What is the total product (manufacturing) cost for the above customer order?

• A) $4050
• B) $ 285
• C) $3360
• D) $ 975

Evaluate the challenges faced by individuals with chronic health conditions in accessing appropriate healthcare services.

Understand the psychological and social effects of hospitalization on patients.

Recognize trends in the healthcare system over the past 30 years and their implications for patient care.

Assess the magnitude and implications of medication errors in hospitals.

---

Definitions:

Procedural Memory

A type of long-term memory that involves the unconscious memory of how to perform tasks, skills, or actions.

Implicit Memory

Unconscious retention in memory, as evidenced by the effect of a previous experience or previously encountered information on current thoughts or actions.

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, or numbers, which is essential for the understanding and use of language.

Explicit Memory

Conscious, intentional recollection of an event or of an item of information.