Quint Manufacturing Uses an Activity-Based Costing System The Following Costs Are Reported

question 66

Multiple Choice

Quint Manufacturing uses an activity-based costing system. The company produces Model 1 and Model 2. Information relating to the two products is as follows:
$\begin{array}{lrr}&\underline{\text { Model 1}}&\underline{\text {Model 2}}\\\text { Units produced } & 24,000 & 30,000 \\\text { Machine hours } & 7,500 & 8,500 \\\text { Direct labour hours } & 8,000 & 12,000 \\\text { Material handling (number of moves) } & 4,000 & 6,000 \\\text { Setups } & 5,000 & 7,000\end{array}$
The following costs are reported:
$$\begin{array} { l r } \text { Materal handling } & \text { 40,000 } \\\text { Labour-related overhead } & 120,000 \\\text { Setugs } & \text { 60,000 }\end{array}$$
-Refer to the figure.What are the labour-related overhead costs assigned to Model 1?

• A)$48,000
• B)$54,400
• C)$58,000
• D)$60,000

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Definitions:

Statistics

The science of collecting, analyzing, interpreting, and presenting data to make informed decisions.

Summary Measures

Quantitative data that provide a statistical overview of a set of observations or measurements.

MIN(range)

Refers to the smallest value in a given range of data.

Smallest Value

The minimum value within a set of numbers or measurements.