Answer the Following Questions Using the Information Below:
Mt Panorama

question 15

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:
$$\begin{array} { l r r r } \text { Product } & \begin{array} { r } \text { Number of } \\\text { Set-ups }\end{array} & \begin{array} { r } \text { Number of } \\\text { Components }\end{array} & \begin{array} { r } \text { Number of } \\\text { Direct Labour Hours }\end{array} \\\hline \text { Standard } & 15 & 10 & 750 \\\text { Deluxe } & 35 & 15 & 500 \\\text { Overhead costs } & \$ 30000 & \$ 50000 &\end{array}$$
-Assume a traditional costing system applies the $80 000 of overhead costs based on direct labour hours.What is the total amount of overhead cost assigned to the standard model?

• A)$50 000
• B)$48 000
• C)$32 000
• D)$30 000

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Definitions:

Permeability

The ability of a material, such as rock or soil, to allow fluids to pass through it, important in determining the movement of water and hydrocarbons in the Earth.

Water Table

The upper surface of the zone of saturation in the ground where soil or rocks are permanently saturated with water.

Topography

The arrangement of natural and artificial physical features of an area, including its relief, and the position of these features.

Groundwater Flow

The movement of groundwater through the Earth's subsurface, driven primarily by gravity and pressure differentials.