Orlando Avionics Makes Three Types of Radios for Small Aircraft-Model

question 73

Multiple Choice

Orlando Avionics makes three types of radios for small aircraft-Model A,Model B,and Model C.The manufacturing operations are mechanized and there is no direct labor.Manufacturing overhead costs are significant,and Orlando has adopted an activity-based costing system.Direct materials costs per unit for each model are as follows: Orlando has three activities-assembly,materials management,and testing.The cost driver for assembly is machine hours.The cost driver for materials management is the number of parts,and the cost driver for testing is the number of units of product.Total costs and production volumes for the year 2015 were estimated as follows:
The Model A radio requires twelve parts to construct,and requires 16 machine hours of processing.What is the manufacturing cost to make one unit of Model A?

• A)$150.00
• B)$132.00
• C)$126.50
• D)$154.50

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Definitions:

Collectivism

A social theory favoring the priority of group needs over individual needs.

Consistency

The quality of always behaving or performing in a similar way, maintaining the same standards.

Openness to Experience

A personality trait characterized by a willingness to try new things, be creative, and think outside the traditional framework.

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.