Orlando Avionics Makes Three Types of Radios for Small Aircraft-Model

question 148

Multiple Choice

Orlando Avionics makes three types of radios for small aircraft-model A, model B, and model C. The manufacturing operations are mechanized and there is no direct labor. Manufacturing overhead costs are significant, and Orlando has adopted an activity-based costing system. Direct materials costs per unit for each model are as follows: Orlando has three activities-assembly, materials management, and testing. The cost driver for assembly is machine hours. The cost driver for materials management is number of parts, and the cost driver for testing is the number of units of product. Total costs and production volumes for the year 2012 were estimated as follows:
What is the allocation rate for the Assembly activity? (Please round to the nearest cent.)

• A)$7.69 per machine hour
• B)$0.60 per machine hour
• C)$0.15 per machine hour
• D)$6.50 per machine hour

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Definitions:

Musicians

Individuals skilled in playing musical instruments, composing, singing, or conducting music as a profession or artistic expression.

Copyrightable

Qualifying for copyright protection; typically refers to original works of authorship that are fixed in a tangible medium of expression.

Product Packaging

Refers to the materials and methods used to wrap or protect goods during transport, sale, and use.

Trademark Infringement

The illegal employment of a trademark or service mark with goods and/or services in a way that may result in confusion, deception, or error regarding the origin of the goods and/or services.