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

question 115

Multiple Choice

Ubben Manufacturing uses an activity-based costing system. The company produces Model X and Model Y. Information relating to the two products is as follows:
$\begin{array}{lrr}&\underline{\text { Model X}}&\underline{\text {Model Y}}\\\text { Units produced } & 20,000 & 40,000 \\\text { Machine hours } & 8,000 &10,000 \\\text { Direct labour hours } & 14,000 & 16,000 \\\text { Material handling (number of moves) } & 1,000 & 1,400 \\\text { Setups } & 40& 60\end{array}$
The following costs are reported:
$$\begin{array} { l r } \text { Enpreering } & \$48,000 \\\text { Setups } & 100,000 \\\text { Machine-related werhead } & 144,000\end{array}$$
-Refer to the figure.What type of activity would machine-related overhead be classified as?

• A)unit-level activity
• B)batch-level activity
• C)product-level activity
• D)facility-level activity

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