Vintage Fun Reproduces Old-Fashioned Style Roller Skates and Skateboards

question 254

Multiple Choice

Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 1000 units, while 1720 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 2.25 direct labor hours per unit. The total estimated overhead for the period is $113,800. 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 cost pool activity rate for Engineering Costs would be closest to (Round all answers to two decimal places.)

• A)$13.85 per engineering hour.
• B)$10.34 per engineering hour.
• C)$20.15 per engineering hour.
• D)$7.47 per engineering hour.

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Definitions:

Indignation

A feeling of anger or annoyance provoked by what is perceived as unfair treatment.

Underlying Tension

The existing but concealed disagreements, issues, or conflict between individuals or groups that could potentially become more evident or erupt into a more pronounced conflict.

Boston Massacre

A confrontation on March 5, 1770, in which British soldiers killed five colonial civilians in Boston, exacerbating American resentment toward British rule.

Laborers

Laborers are workers, often in the construction, manual labor, or agricultural fields, who perform physical tasks and are essential to the completion of projects and production.