Exhibit 10-5
Catalina Company Uses Activity-Based Costing to Allocate Variable

question 17

Multiple Choice

Exhibit 10-5
Catalina Company uses activity-based costing to allocate variable manufacturing overhead costs to products.The company produced 1,800 units of product last month,and identified three activities with the following information for last month.
$\begin{array}{lcccc}&&\text { Standard} & \text { Actual } & \text { Actual } \\&&\text { Quantity }\\\text { Activity } & \text { Standard Rate } & \text { per Unit } & \text { Costs } & \text { Quantity } \\&&\text { Produced }\\\hline \text { Purchase }& \$ 80 \text { per order } & 0.50 \text { order per unit } & \$ 78,000 & 1,000 \text { order's } \\\text { orders }\\ \text { Product testing } &\$ 10 \text { per test } &0.9 \text { minutes per } & \$ 28,000&2,000 \text { test } \\&\text { minute }&\text { unit }&&\text { minutes }\\ \text { direct labor } & \$ 16 \text { per direct } & 5 \text { hours per unit } & \$ 140,000 & 8,000 \text { direct } \\&\text{labor hour}&&&\text{labor hour}\end{array}$
-Refer to Exhibit 10-5.What is the variable overhead efficiency variance for the indirect labor activity?

• A)$16,000 favorable
• B)$16,000 unfavorable
• C)$12,000 favorable
• D)$12,000 unfavorable
• E)None of the answer choices is correct.

Recognize the regulatory, health, and safety challenges associated with packaging and labeling.

Understand the difference between primary demand and selective demand in market strategy.

Analyze the impact of packaging on product durability, including its role in protecting the product and extending shelf life.

Understand the definition and implications of "caveat emptor" in sales transactions.

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Definitions:

Data Flows

The movement and management of data through networks, systems, or processes in computing.

Network Devices

Hardware components used to connect computers or other electronic devices together to enable communication and data transfer over a network.

Unshielded Twisted-Pair

A type of cable that consists of pairs of wires twisted together without additional shielding, commonly used for telecommunications and network connections.

Wired Home Networks

Home networks that use physical cables, like Ethernet, to connect devices such as computers, routers, and switches, providing stable and fast connections.