Vintage Fun Reproduces Old-Fashioned Style Roller Skates and Skateboards

question 53

Multiple Choice

Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 900 units, while 1770 skateboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Roller skates require 4.5 direct labor hours per unit, while skateboards require 3.25 direct labor hours per unit. The total estimated overhead for the period is $114,300. 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: (Round all answers to two decimal places.) The predetermined overhead allocation rate using the traditional costing system would be closest to (Round all answers to two decimal places.)

• A)$52.97 per direct labor hour.
• B)$50.24 per direct labor hour.
• C)$42.81 per direct labor hour.
• D)$11.66 per direct labor hour.

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Definitions:

Memory Cells

A type of lymphocyte that remains in the body for a long time after infection or vaccination, providing immunity by remembering the pathogen.

Adaptive Immunity

The branch of the immune system that involves memory, allowing for a faster and more specific response to pathogens previously encountered.

Plasma Cells

A type of white blood cell that produces and secretes large volumes of antibodies.