Durable Engines Company Uses ABC to Account for It Manufacturing

question 180

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.
-
The allocation rate for packaging is:

• A)$5.28.
• B)$6.40.
• C)$9.60.
• D)$3.00.

---

Definitions:

Semantic Memory

A type of long-term memory involving the capacity to remember words, concepts, and facts not tied to personal experiences.

Episodic Memory

An aspect of memory dedicated to the retrieval of unique events, circumstances, and personal encounters from the past.

Recall

The cognitive process of retrieving information from memory without significant cues, often tested in psychological studies and memory research.

Relearning

The process of learning information or skills again, often faster than the initial learning, due to previous exposure or knowledge.