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

question 51

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 materials management activity? (Please round to the nearest cent.)

• A)$0.67 per part
• B)$1.50 per part
• C)$0.15 per part
• D)$6.00 per part

Apply knowledge of data types and graphical representations to evaluate and construct effective data visualizations.

Recognize and classify data based on its characteristics in real-world contexts.

Assess the appropriateness of different data visualization techniques for various types of data.

Construct and interpret frequency distributions for nominal and ordinal data.

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Definitions:

Current Liabilities

Debts or obligations that a company is expected to pay within one year, including accounts payable, short-term loans, and accrued expenses.

Accounts Payable

Liabilities of a business that are due to suppliers for goods and services bought on credit, to be paid off within a short period.

Financial Statement Analysis

This is the process of reviewing and evaluating a company's financial statements to make business decisions.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.