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

question 81

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 machine overhead cost will be assigned to Product X using Process 1?

Definitions:

Private School

An educational institution not funded by public sources and often selective in its admissions.

Public School

In the United States, a school that is maintained at public expense for the education of the children of a community or district.

Data Collection

The process of gathering and measuring information on variables of interest in an established systematic fashion that enables one to answer stated research questions, test hypotheses, and evaluate outcomes.

Stress Reactions

The body's response to any demand or threat, which can be physical, psychological, or emotional in nature.