Answer the Following Questions Using the Information Below

question 29

Multiple Choice

Answer the following questions using the information below:
Racer X Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled:

-Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead cost assigned to the deluxe model?

• A)$25,500
• B)$25,000
• C)$24,000
• D)$12,500

---

Definitions:

Financial Capital

Economic resources measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or provide their services.

Peer Lending

A financing method where individuals lend and borrow money to each other directly without the intervention of traditional financial institutions.

Capital Flight

The large-scale exodus of financial assets and capital from a country due to economic or political instability.

Imperfect Information

A situation where all parties in a transaction do not have the same information, leading to an inefficient market outcome.