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

question 74

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:
The Model C radio requires 19 parts to construct, and also requires 20.5 machine hours of processing. What is the manufacturing cost to make one unit of Model C?

• A)$206.25
• B)$176.00
• C)$126.50
• D)$166.25

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Definitions:

Follicle-Stimulating Hormone

A hormone secreted by the anterior pituitary gland that stimulates the growth of ovarian follicles in females and sperm production in males.

Sexual Excitation

The arousal and increased physiological and sexual interest that can arise from psychological or physical stimuli.

Ovulation

The process in the female menstrual cycle where a mature egg is released from the ovary, making it available for fertilization.

LH

Luteinizing hormone, a hormone secreted by the anterior pituitary gland that plays a key role in controlling the function of ovaries in women and testes in men.