Newman Company Recently Installed an Activity-Based Relational Database -Refer to the Figure

question 121

Multiple Choice

Newman Company recently installed an activity-based relational database. Using the information contained in the activity relational table, the following pool rates were computed:
$400 per purchase order
$24 per machine hour, Process 1
$30 per machine hour, Process 2
$80 per engineering hour

Two products are produced by Special Products: X and Y. The plant has two manufacturing processes, Process 1 and Process 2. Other processes include engineering, product handling, and procurement. Product X goes through Process 1 while Product Y goes through Process 2. The product relational table for Special Products is as follows:
$\begin{array}{llr} &\text {Product X:}\\& \text {Activity Driver \# and Name}&\text { Activity Usage }\\1 & \text { Units } & 200,000 \\2 & \text { Purchase orders } & 250 \\3 & \text { Machine hours } & 80,000 \\4 & \text { Engineering hours } & 1,250\end{array}$



$\begin{array}{llc} &\text {Product X:}\\& \text {Activity Driver \# and Name}&\text { Activity Usage }\\1 & \text { Units } & 25,000 \\2 & \text { Purchase orders } & 125 \\3 & \text { Machine hours } & 10,000 \\4 & \text { Engineering hours } & 1,500\end{array}$
-Refer to the figure.How much purchasing overhead cost will be assigned to Product X using the number of purchase orders?

• A)$50,000
• B)$100,000
• C)$133,500
• D)$80,000,000

---

Definitions:

Easy Child

A temperament classification describing a child who is generally calm, adaptable, and has a positive reaction to new situations or changes.

Glum

A mood of feeling sad, depressed, or despondent.

Basic Styles

Refers to the foundational approaches or methods adopted in various disciplines or practices.

Temperament

An individual's innate predisposition towards patterns of emotion and behavior.