Vittoria Corporation Manufactures Two Products-Carts and Wheelbarrows

question 51

Multiple Choice

Vittoria Corporation manufactures two products-Carts and Wheelbarrows.The annual production and sales of Carts is 2,000 units,while 1,800 units of Wheelbarrows are produced and sold.The company has traditionally used direct labour hours to allocate its overhead to products.Carts require 1.0 direct labour hours per unit,while Wheelbarrows require 0.5 direct labour hours per unit.The total estimated overhead for the period is $117,500.The company is looking at the possibility of changing to an activity-based costing system for its products.If the company used an activity-based costing system,it would have the following three activity cost pools:

The overhead cost per Wheelbarrow using the traditional costing system would be closest to

• A)$65.28.
• B)$40.52.
• C)$20.26.
• D)$18.01.

Calculate forecasted values using trend equations and seasonal indexes.

Identify and use appropriate methods for determining monthly and other periodic seasonal indexes.

Understand and interpret linear and quadratic models for time series data.

Understand the components of a time series (trend, cyclical, seasonal, and random variations) and their interactions.

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Definitions:

Capital Input

The amount of capital goods used in the production process, influencing the output.

Competitive Firms

Companies that operate in a market where there are many buyers and sellers, and they have no control over the market price of their product.

Marginal Product

The additional output generated by adding one more unit of a specific input, holding all other inputs constant.

Profit-maximizing

A strategy or approach aimed at achieving the highest possible profit from business operations, often through cost management and optimal pricing.