Quint Manufacturing Uses an Activity-Based Costing System

question 22

Multiple Choice

Quint Manufacturing uses an activity-based costing system. The company produces Model 1 and Model 2. Information relating to the two products is as follows: The following costs are reported:
labour-related overhead costs assigned to Model 1 are

• A) £60,000.
• B) £58,000.
• C) £54,400.
• D) £48,000.

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Definitions:

Amylase

An enzyme produced primarily by the pancreas and salivary glands that helps in the digestion of carbohydrates by breaking down starch into sugar.

Anorexia

An eating disorder characterized by an obsessive fear of gaining weight and a refusal to maintain a healthy body weight.

Cholecystectomy

A surgical procedure to remove the gallbladder.

Colostomy

A surgical operation where a piece of the colon is diverted to an artificial opening in the abdominal wall.