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

---

Definitions:

Asymmetrical

Lacking symmetry; not identical on both sides of a central line.

Unimodal

Unimodal refers to a distribution or dataset that has only one mode or peak, representing the most frequent value.

Salary Negotiations

The process in which an individual discusses their remuneration with an employer, aiming to reach a mutually satisfactory pay.

Symmetrical

Refers to a balanced shape on either side of a central axis, where both halves of a dataset or object are mirror images of each other.