Answer the Following Questions Using the Information Below:
Ghan Collectibles

question 105

Multiple Choice

Answer the following questions using the information below:
Ghan Collectibles produces T-shirts and sweatshirts.Product profitability is analysed as follows:
$\begin{array} { l r r } & \text { T-SHIRTS } & \text { SWEATSHIRTS } \\ \text { Production and sales volume } & 60000 \text { units } & 35000 \text { urits } \\ \text { Selling price } & \$ 16.00 & \$ 29.00 \\ \text { Direct material } & \$ 2.00 & \$ 5.00 \\ \text { Direct labour } & \$ 4.50 & \$ 7.20 \\ \text { Manufacturing overhead } & \$ 2.00 & \$ 3.00 \\ \text { Gross profit } & \$ 7.50 & \$ 13.80 \\ \text { Selling and administrative } & \$ 4.00 & \$ 7.00 \\ \text { Operating profit } & \$ 3.50 & \$ 6.80 \end{array}$

Ghan Collectibles's managers have decided to revise their current assignment of overhead costs to reflect the following $\mathrm { ABC }$ cost information:

$\begin{array}{c}\text { Activities demanded }\\\begin{array}{rr}\text { T-SHIRTS } & \text { SWEATSHIRTS } \\0.75 \mathrm{DLH} / \text { unit } & 1.2 \mathrm{DLH} / \mathrm{unit} \\45000 \mathrm{DLHs} & 42000 \mathrm{DLHs} \\60000 \text { inspections } & 17500 \text { inspections }\end{array}\end{array}$
-Under the revised ABC system,total overhead costs allocated to sweatshirts will be:

• A)$48 720
• B)$76 720
• C)$224 920
• D)None of these answers are correct.

---

Definitions:

Ethnicity

A category of people who identify with each other based on shared ancestral, social, cultural, or national experiences.

Institutional Discrimination

The unjust and discriminatory mistreatment of an individual or group by society and its institutions, either overtly or covertly.

Individual Discrimination

Prejudice or discriminatory actions carried out by an individual or small group directly towards another person or group based on race, sex, age, or other characteristics.

Difference

In sociology, difference often refers to the distinction or disparity between social groups based on attributes like race, gender, class, or ethnicity.