Priestly Company Uses Activity-Based Costing

question 73

Multiple Choice

Priestly Company uses activity-based costing.The company is trying to estimate the costs of the processing activity in the factory.The company has developed the following flexible budget formula: Y = $10.50X + $13,000
Where: Y = Total processing cost per quarter and X = Number of machine hours
If 10,000 machine hours are used next quarter,total variable costs are ________ and total fixed costs are ________.

• A)$105,000; $13,000
• B)$105,000; $130,000,000
• C)$113,000; $130,000,000
• D)$10.50; $13,000

---

Definitions:

Self-fulfilling Prophecies

Expectations about a situation or person that lead to actions which cause the expectations to come true.

Discriminations

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Sexism

Prejudice and discrimination based on gender.

Cognitive Categorization

A process in which the mind quickly sorts information into categories to function efficiently.