Use the Information Below to Answer the Following Question(s)

question 25

Multiple Choice

Use the information below to answer the following question(s) .General Media manufactures cassettes and CDs in separate divisions utilizing one plant location.The following data have been prepared for review.
-What is the allocated cost to the two General Media divisions, respectively, if the single rate is $1,000? Assume that the Cassette and CD Divisions used 1,750 and 200 hours, respectively.

• A)$807,692 rounded and $92,308 rounded
• B)$900,000 and $200,000
• C)$1,750,000 and $200,000
• D)$2,800,000 and $320,000
• E)$900,000 and $320,000

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Definitions:

Restatement (Third)

A collection of volumes intended to inform the judiciary, lawyers, and others about general principles of common law in various areas.

Section 402A

A section of the Restatement (Second) of Torts relating to the liability of sellers for harm caused by defective products.

Design Defects

Flaws in the intended design of a product that pose a risk to consumers or fail to perform safely as intended, leading to potential legal liability.

Strict Liability

A legal doctrine that holds a party responsible for their actions or products without the plaintiff having to prove negligence or fault.