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

question 26

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 testing activity? (Please round to the nearest cent.)

• A)$0.67 per unit
• B)$4.50 per unit
• C)$0.22 per part
• D)$1.50 per part

Comprehend the steps involved in the Managing Strategic Sourcing Process.

Evaluate supplier selection criteria and understand the importance of financial health among other factors.

Understand the Item Procurement Importance Quadrant and categorize items accordingly.

Appreciate the impacts of procurement strategies, such as supplier diversification, on procurement costs.

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Definitions:

Social Learning Theory

A theory that suggests people learn from observing others, incorporating the observed behaviors into their own repertoire based on seen outcomes.

Extinction

In psychology, it refers to the gradual weakening and disappearance of a conditioned response; in biology, it signifies the permanent end of an organism or species.

Behavior Modification

The use of reward and punishment to alter behavior, based on the principles of operant conditioning.

Behavior Frequency

The count of how often a specific behavior or action is performed over a set period of time.