OP Technologies Manufacturing Manufactures Small Parts and Uses an Activity-Based

question 71

Multiple Choice

OP Technologies Manufacturing manufactures small parts and uses an activity-based costing system. The following parts were produced in October with the following information:
Total unit cost for part B is closest to (rounded to two decimal places)

• A)$11.89
• B)$6.69
• C)$7.65
• D)$7.64

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Definitions:

Monte Carlo Simulation

A computational algorithm that relies on repeated random sampling to obtain numerical results, often used to model probabilities of different outcomes in a complex system.

Random Numbers

A sequence of numbers or symbols that cannot be reasonably predicted better than by a random chance, often used in simulations and statistical sampling.