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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Island Country

A nation that is entirely surrounded by water and consists of one or more islands, often facing unique geographic and economic challenges.

Adult Population

The segment of the population that comprises individuals considered to be of working age, typically over a specific age threshold, who are potential participants in the workforce.

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Gross Domestic Product, representing the total market value of all final goods and services produced within a country's borders over a given time period.

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