Exhibit 3-1 Hydrate Inc.makes Two Types of Sports Drinks and Is Implementing

question 42

Multiple Choice

Exhibit 3-1
Hydrate Inc.makes two types of sports drinks and is implementing an activity-based costing system.Previously,all overhead had been applied on the basis of machine hours.The company produces 22,500 units of Sports Light and 42,284 units of Thirst Quench.Additional data is as follows:

-Refer to Exhibit 3-1.What is the overhead cost per unit for Thirst Quench using ABC?

• A)$2.00
• B)$0.86
• C)$0.45
• D)$0.50
• E)None of the answer choices is correct.

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Definitions:

Shaking

Involuntary rhythmic movements or tremors of the body, which can be caused by emotional stress, neurological disorders, or other medical conditions.

Reappraisal Process

A cognitive strategy that involves changing the way one thinks about a potentially emotion-eliciting event in order to alter its emotional impact.

Sadness

An emotional state characterized by feelings of disappointment, loss, or despair.

Tears

A saline fluid produced by the lacrimal glands, serving both emotional and lubricative functions for the eyes.