The Cost Pool,Machine Set-Ups,has Estimated Overhead of $120 000

question 26

Multiple Choice

The cost pool,Machine Set-ups,has estimated overhead of $120 000.The machines in the pool produce two products,X (200 set-ups) and Y (400 set-ups) .The amount of machine set-up costs that should be allocated to product Y is:

• A)$80 000
• B)$60 000
• C)$40 000
• D)$120 000

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Definitions:

Board of Directors

The Board of Directors is a group of individuals elected by the shareholders of a company to oversee the management and make major decisions.

Stock Dividend

A dividend payment made in additional shares of a company's stock instead of cash.

Cash Dividend

A distribution of earnings made by a company to its stockholders, often in the form of profits.

Stock Split

A corporate action that increases the number of shares by dividing each share, which typically reduces the price per share.