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

question 39

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 Y using Process 2?

• A)$240,000
• B)$300,000
• C)$1,920,000
• D)$2,400,000

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Definitions:

Airport Security

The techniques and methods used in an effort to protect passengers, staff, and planes from malicious harm, crime, and other threats.

Economizing Problem

The challenge of satisfying unlimited wants with limited resources, necessitating choices and prioritizations.

Limited Resources

The scarcity of resources (such as time, money, manpower, and natural resources) that is a fundamental economic problem faced by societies.

Unlimited Wants

Unlimited Wants refer to the concept that human desires and aspirations are endless, influential in driving demand in economics.