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

---

Definitions:

Checks and Balances

A system within a government that ensures no single branch becomes too powerful by providing each branch the authority to limit the powers of the others.

Republicanism

A political ideology that values the principles of a republic, emphasizing civic virtue, liberty, and resistance to corruption and monarchy.

Common Sense

Practical judgment concerning everyday matters, or a basic ability to perceive, understand, and judge in a manner that is shared by (common to) nearly all people.

Declaration of Independence

A foundational document declaring the thirteen American colonies' independence from British rule, adopted on July 4, 1776.