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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:

Performance Rating

An evaluation measure used to assess the efficiency, effectiveness, or output level of employees, processes, or equipment against predefined standards.

Observed Time

The actual amount of time recorded for a task or process operation based on direct observation.

Futures Contract

A legally binding contract for the future transaction of goods or assets at a set price and predetermined date.

Cash Flows

Cash flows represent the net amount of cash and cash-equivalents being transferred into and out of a business, crucial for assessing its financial health, liquidity, and solvency.