Vintage Fun Reproduces Old-Fashioned Style Roller Skates and Skateboards

question 184

Multiple Choice

Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 900 units, while 1700 skateboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Roller skates require 3.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. The total estimated overhead for the period is $115,300. 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: The overhead cost per skateboard using an activity-based costing system would be closest to (Round all answers to two decimal places.)

• A)$46.11
• B)$134.65
• C)$63.18
• D)$33.45

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Definitions:

Community Resources

Various supports and facilities available within a community that provide assistance, information, and services to its members.

Meals on Wheels

A program that delivers meals to individuals at home who are unable to purchase or prepare their own meals, often serving the elderly or disabled.

Caregiver Role Strain

The stress or burden experienced by caregivers due to the demands of caring for a chronically ill, disabled, or elderly family member.

Dysfunctional Family Processes

The unhealthy interactions and behaviors among family members that disrupt the family structure and functioning.