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

question 36

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 B radio requires 15 parts to construct, and also requires 18 machine hours of processing. What is the manufacturing cost to make one unit of Model B?

• A)$150.00
• B)$176.00
• C)$126.50
• D)$144.00

Understand corporate taxation and financial reporting obligations.

Understand the concepts of price ceilings and price floors in market economics.

Describe the impact of government interventions, such as price controls, on market equilibrium.

Identify the conditions under which surpluses and shortages occur in the market.

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Definitions:

Randomly Assigned Control Group

A group of subjects in an experiment that is randomly selected to not receive the treatment, allowing for a comparison to evaluate the effect of the treatment.

Observational Studies

Research methods that involve assessing subjects without manipulating the environment or the participants, used to identify and describe natural occurrences.

Statistical Correlation

A measure that indicates the extent to which two or more variables fluctuate together, showing how one variable is linearly related to another.

Correlate

To have a mutual relationship or connection, where one thing affects or depends on another.