Zipp Company Manufactures Two Products (X and Y)

question 101

Multiple Choice

Zipp Company manufactures two products (X and Y) . The overhead costs (£84,000) have been divided into three cost pools that use the following activity cost drivers: What is the allocation rate per setup using activity-based costing?

• A) £900
• B) £450
• C) £9,000
• D) £2,100

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Definitions:

Shopkeeper

An individual who owns or manages a small retail business or store.

Low Price

A cost that is significantly below the average or standard price in a market, often used to attract more consumers or gain market share.

Sequential Game

A type of game theory model where players make decisions one after another, with each player's decision influenced by the previous player's choice.

Shopkeeper

A person who owns or manages a small retail business or shop.