Quantum Corporation Has Provided the Following Data from Its Activity-Based

question 55

Multiple Choice

Quantum Corporation has provided the following data from its activity-based costing system: $\begin{array}{lcrl}\text { Activity Cost Pool }&&\text { Overhead Cost }&\text { Total Activity }\\\text { Assembly } & \$ & 1,114,920 & 57,000 \text { machine hours } \\\text { Processing orders } & \$ & 47,016 & 1,800 \text { orders } \\\text { Inspection } & \$ & 107,328 & 1,560 \text { inspection hours }\end{array}$

The company makes 430 units of product R32E a year, requiring a total of 1,120 machine-hours, 40 orders, and 30 inspection-hours per year. The product's direct materials cost is $49.81 per unit and its direct labor cost is $12.34 per unit. The product sells for $129.90 per unit.
- According to the activity-based costing system, the total overhead cost for producing the 340 units of the J71B product is:

• A) $17,957.92
• B) $30,972.72
• C) $15,504.00
• D) $21,622.72
• E) $37,126.72

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Definitions:

Strategy

A comprehensive plan or set of actions designed to achieve long-term goals or overall objectives, especially in business or military contexts.

Integrated

The process of combining or coordinating separate elements to work together as a unified whole, enhancing efficiency and effectiveness.

Externally-oriented

A focus or approach that prioritizes external factors, such as market trends and customer needs, over internal issues.

Mission

A statement or declaration of an organization's core purpose and focus that normally remains unchanged over time.