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

question 1

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 spending variance for the purchase order activity?

• A)$2,000 favorable
• B)$2,000 unfavorable
• C)$8,000 favorable
• D)$8,000 unfavorable
• E)None of the answer choices is correct.

Understand the mechanism of action for auxin and its effects on plant physiology.

Identify the roles of different plant hormones in root development, fruit ripening, and response to light.

Describe the concept of polar transport of plant hormones and its significance.

Explain the role of ethylene in fruit ripening processes.

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Definitions:

Ethical Arguments

pertain to discussions or reasoning grounded in moral principles about what is right, wrong, good, or bad in human conduct.

Terminal Drop

A significant decline in cognitive abilities shortly before death, often observed in the elderly.

Lifelong Process

An ongoing series of actions or events that continue throughout an individual's life.

Inevitability of Death

Describes the absolute certainty that death is a universal and final outcome for all living beings.