Answer the Following Questions Using the Information Below

question 40

Multiple Choice

Answer the following questions using the information below:
Nichols, Inc., manufactures remote controls. Currently the company uses a plant-wide rate for allocating manufacturing overhead. The plant manager believes it is time to refine the method of cost allocation and has the accounting department identify the primary production activities and their cost drivers:
The current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $200 per labor hour.
-What are the indirect manufacturing costs per remote control assuming the traditional method is used and a batch of 500 remote controls are produced? The batch requires 1,000 parts, 10 direct manufacturing labor hours, and 15 minutes of inspection time.

• A)$2,000.00 per remote control
• B)$0.25 per remote control
• C)$2.00 per remote control
• D)$4.00 per remote control

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Definitions:

Crisis Situations

Scenarios that threaten significant harm or disruption, necessitating urgent and effective responses to mitigate impact.

Crisis

A critical or tumultuous situation that requires immediate attention and action, often leading to a turning point.

Structured Problems

Challenges that have clearly defined parameters and can be solved through known procedures or algorithms.

Programmed Decisions

Routine decision-making processes that follow established procedures or rules, often used for common and predictable situations.