The Nut House Sells Almonds,cashews,and Pistachios The Formula to Determine the Number of Cans of Each

question 142

Multiple Choice

The Nut House sells almonds,cashews,and pistachios.They sold 10,000 cans last year.Pistachios outsold cashews by a margin of 2 to 1 in cans.Sales of almonds were half the sales of cashews in cans.Fixed costs for the Nut House are $20,000 and additional information follows: $$\begin{array} { | l | c | c | } \hline \text { Product } & \text { Unit Sales Prices } & \text { Unit Variable Cost } \\\hline \text { Almonds } & \$ 8.00 & \$ 4.00 \\\hline \text { Cashews } & \$ 10.00 & \$ 5.00 \\\hline \text { Pistachios } & \$ 6.00 & \$ 4.00 \\\hline\end{array}$$ The formula to determine the number of cans of each nut sold is:

• A)3x + 2x + x = 10,000.
• B)x + 2x + 0.5 x = 10,000.
• C)x + y + z = 10,000.
• D)none of the above.

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Definitions:

Traditional Costing

A costing method that allocates overhead costs based on a single predetermined rate.

Overhead Applied

The amount of overhead costs allocated to products or job orders based on the predetermined overhead rate.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific products or projects based on their use of activities.

Overhead Assigned

The allocation of indirect costs or overhead to specific cost objects, such as products or jobs, based on a predetermined formula.