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

question 12

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 deluxe model?

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

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Definitions:

Pygmalion Effect

The situation that occurs when a managerial leader believes that a group member will succeed and communicates this belief without realizing it.

Live up to Expectations

The act of meeting or surpassing the anticipations, hopes, or standards set by oneself or others.

Higher-level Needs

Refers to the more abstract, psychological, and self-fulfillment needs that go beyond basic physical or material requirements, such as self-esteem and self-actualization.

Hands-on Guidance

Direct involvement and support in leading others or instructing how tasks should be performed, typically through practical demonstration.