The Emmanuele Company Has Collected the Following Data for Use

question 21

Multiple Choice

The Emmanuele Company has collected the following data for use in calculating product costs:
Activity Data: (expected and actual)
$\begin{array}{|l|l|l|l|}\hline & \text { Mops } & \text { Brooms } & \text { Total } \\\hline \text { Units produced } & 50,000 & 250,000 & 300,000 \\\hline \text { Prime costs } & \$ 200,000 & \$ 750,000 & \$ 950,000 \\\hline \text { Direct labour hours } & 10,000 & 40,000 & 50,000 \\\hline \text { Machine hours } & 20,000 & 10,000 & 30,000 \\\hline \text { Number of setups } & 25 & 75 & 100 \\\hline \text { Inspection hours } & 1,200 & 2,800 & 4,000 \\\hline \text { Number of moves } & 140 & 210 & 350\\\hline\end{array}$ Departmental Data: (expected and actual)
$\begin{array}{|l|r|r|r|}\hline & \text { Moulding } & {\text { Assembly }} & \text { Total } \\\hline \text { Direct labour hours } & & & \\\hline \text { Mops } & 5,000 & 5,000 & 10,000 \\\hline \text { Brooms } & 5,000 & 35,000 & 40,000 \\\hline \text { Total } & 10,000 & 40,000 & 50,000 \\\hline \text { Machine hours } & & & \\\hline \text { Mops } & 17,000 & 3,000 & 20,000 \\\hline \text { Brooms } & 3,000 & 7,000 & 10,000 \\\hline \text { Total } & 20,000 & 10,000 & 30,000 \\\hline \text { Overhead costs } & & & \\\hline \text { Machining } & \$ 120,000 & \$ 30,000 & \$ 150,000 \\\hline \text { Moving materials } & 40,000 & 30,000 & 70,000 \\\hline \text { Setting up } & 70,000 & 10,000 & 80,000 \\\hline \text { Inspecting products } & 20,000 & 30,000 & 50,000 \\\hline \text { Total } & 250,000 & \$ 100,000 & \$ 350,000 \\\hline\end{array}$
-Refer to the figure.Emmanuele Company uses departmental overhead rates: Moulding uses machine hours and Assembly uses labour hours.What is the unit product cost for brooms if departmental overhead rates are used?

• A)$1.40
• B)$3.00
• C)$3.50
• D)$8.50

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Definitions:

Specialty Products

Specialty products are goods and services that are perceived as unique or high-value by consumers, often characterized by significant brand loyalty and a higher purchasing effort.

Shopping Products

Goods that consumers purchase after comparing quality, price, and style from various sellers, spending considerable time and effort to make the best decision.

Business Products

Goods or services that are sold to other businesses for further production, use in operations, or resale.

Convenience Products

Consumer goods or services that are widely available and can be purchased with minimal effort.