Answer the Following Questions Using the Information Below:
Mt Panorama

question 40

Multiple Choice

Answer the following questions using the information below:
Mt Panorama Racing Corporation manufactures two models of motorised go-carts,a standard and a deluxe model.The following activity and cost information has been compiled:
$$\begin{array} { l r r r } \text { Product } & \begin{array} { r } \text { Number of } \\\text { Set-ups }\end{array} & \begin{array} { r } \text { Number of } \\\text { Components }\end{array} & \begin{array} { r } \text { Number of } \\\text { Direct Labour Hours }\end{array} \\\hline \text { Standard } & 15 & 10 & 750 \\\text { Deluxe } & 35 & 15 & 500 \\\text { Overhead costs } & \$ 30000 & \$ 50000 &\end{array}$$
-Number of set-ups and number of components are identified as activity-cost drivers for overheads.Assuming an activity-based costing system is used,what is the total amount of overhead cost assigned to the deluxe model?

• A)$51 000
• B)$48 000
• C)$25 000
• D)$50 000

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Definitions:

Deinstitutionalization

The process of moving mentally ill patients from long-term institutions into community- or family-based care.

Advantages

The benefits or favorable positions gained from a particular situation or action.

Secondary Prevention

Efforts aimed at early detection and prompt intervention to prevent the progression of a disease or injury.

Mental Institution

A facility specialized for the treatment, and care of individuals with mental disorders or illnesses.