Trintal Corporation Manufactures Two Models of Motorized Go-Carts, a Standard

question 108

Multiple Choice

Trintal Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled:
$\begin{array}{lrrr}&\text { Number of }&\text { Number of }&\text { Number of } \\\text { Product }&\text { Setups }&\text { Components }&\text { Direct Labor Hours }\\\text { Standard } & 15 & 10 & 750 \\\text { Del uxe } & 35 & 15 & 500 \\\text { Overhead costs } & \$ 16,500 & \$ 23,500 \end{array}$
-Assume a traditional costing system applies the $40,000 of overhead costs based on direct labor hours.What is the total amount of overhead cost assigned to the standard model?

• A) $16,000
• B) $24,000
• C) $25,000
• D) $15,000

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Definitions:

Management Flexibility

The ability of a business's management team to adapt to changes or challenges in the operating environment, including strategic decision-making.

Personal Liability

The legal responsibility of an individual to compensate for harm or damages their actions have caused, potentially affecting their personal assets.

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Limited Liability Partnership, a legal entity where some or all partners have limited liabilities, protecting personal assets from business debts and liabilities.

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