Vandalay Industries Manufactures Two Products: Toasters and Blenders

question 19

Multiple Choice

Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2100 units, while 1600 units of blenders are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Toasters require 1.25 direct labor hours per unit, while blenders require 1 direct labor hours per unit. The total estimated overhead for the period is $149,315. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools: The overhead cost per Blenders using the traditional costing system would be closest to
(Round all answers to two decimal places.)

• A)$28.27
• B)$37.85
• C)$93.32
• D)$19.40

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Definitions:

Completing Phase

The final stage in a process or project where all necessary tasks are finished and objectives are met.

Three-step Writing Process

A structured approach to writing that includes planning, drafting, and revising, aimed at producing clear, effective communication.

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The process of reviewing and correcting written material to ensure accuracy in grammar, spelling, punctuation, and formatting.

Three-step Writing Process

A methodology involving planning, writing, and completing to enhance communication effectiveness.