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:

Minor Illnesses

Less serious health conditions that are typically temporary and treatable.

Preschool Years

A developmental period in early childhood, typically ranging from ages 3 to 5, before formal schooling begins, crucial for social, physical, and cognitive development.

Growth Rate

The rate at which the quantity of something, such as population, economy, or biological growth, increases over a certain period of time.

Aggressive

Behavior characterized by hostility, assertiveness, and often the intent to harm or assert dominance over others.