Durable Engines Company Uses ABC to Account for It Manufacturing

question 120

Multiple Choice

Durable Engines Company uses ABC to account for it manufacturing process. $$\begin{array} { | l | c | l | } \hline \text { Activities } & { \begin{array} { c } \text { Indirect activity } \\\text { budget }\end{array} } & \text { Allocation base (cost driver) } \\\hline \text { Materials handling } & \$ 36,000 & \text { Based an number af parts } \\\hline \text { Maching setup } & \$ 19,200 & \text { Based an number of setups } \\\hline \text { Assembling } & \$ 6,000 & \text { Based an number of parts } \\\hline \text { Packaping } & \$ 12,800 & \text { Based an number of finished urits } \\\hline\end{array}$$ Durable Engines Company expects to produce 2,000 engines.Durable Engines Company also expects to use 12,000 parts and have 16 setups.
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The allocation rate for engine setups is:

• A)$1,200.
• B)$ 800.
• C)$ 375.
• D)$ 5.28.

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Definitions:

Sarcomeres

The fundamental units of a muscle's myofibril, responsible for muscle contraction.

Z Line (Disc)

A key component in skeletal muscle fibers that anchors the actin filaments and marks the boundary between sarcomeres.

Motor Unit

A single motor neuron and all the muscle fibers it innervates, functioning as a single operational unit in muscle contraction.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.