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

question 66

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 cost for producing the 340 units of the J71B product is:

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

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Definitions:

Petty Cash Fund

A small amount of cash on hand used for covering minor expenses in an organization.

Issue Resolution

The process of solving problems or addressing concerns, often used in customer service and technical support contexts.

Chain Of Command

The formal line of authority within an organization, detailing how orders are passed down from higher to lower ranks.

Diversity

Differences among people in terms of identity, age, sex, race, physical ability, ethnicity, religious beliefs, values and mores, sexual orientation, and personality.