Silver Company Manufactures Several Different Products and Uses an Activity-Based

question 128

Multiple Choice

Silver Company manufactures several different products and uses an activity-based costing system.Information from its system for the year for all products follows: $$\begin{array} { | l | c | r | l | } \hline \text { Activity cost pool } & { \text { Total cast } } & { \text { Total activity } } \\\hline \text { Assembly } & \$ o 266,000 & 14,000 & \text { machine-hours } \\\hline \text { Pracessing arders } & \$ o 86,400 & 3,600 & \text { Orders } \\\hline \text { Inspection } & \$ o 18,630 & 2,300 & \text { inspection-hours } \\\hline\end{array}$$ The annual production and sales of one of its products,the Zinger,are 1,000 units.The following data relate to the production and sales of Zingers in the most recent year:
11ea84ce_c55a_24b0_83dc_4b1929bba0c4 What is the average cost of one Zinger?

• A)$ 19.96
• B)$195.16
• C)$226.30
• D)$155.24

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Definitions:

SAT Scores

The results a student achieves on the Scholastic Assessment Test, a standardized test widely used for college admissions in the United States.

Listening Music

The act of actively engaging in and paying attention to music for enjoyment, relaxation, or emotional response.

Randomized Block Design

A statistical design in experiments where subjects are placed into blocks and then randomly assigned to treatments to reduce variability.

Yield

The amount of product produced per unit area or per process.