Watson's Computer Company Uses ABC to Account for Its Manufacturing

question 187

Multiple Choice

Watson's Computer Company uses ABC to account for its manufacturing process. Watson's Computer Company expects to produce 2620 computers. Watson's Computer Company also expects to use 15,000 parts and have 20 setups.
The allocation rate for packaging is (Round all answers to two decimal places.)

• A)$3.47
• B)$10.69
• C)$5.65
• D)$5.93

---

Definitions:

Minimum-wage Laws

Legislation established to set the lowest hourly rate that employers can legally pay their workers, aimed at preventing exploitation and poverty.

Firms

Organizations that use various inputs to produce goods or services for sale to consumers, other businesses, or the government.

Workers

Individuals engaged in a particular task or activity for wages or salary.

Price Floor

A government- or group-imposed price control or limit on how low a price can be charged for a product.