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

question 77

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:
$\begin{array}{lrrr}&\text { Number of }&\text { Number of }&\text { Number of } \\\text { Product }&\text { Setups }&\text { Components }&\text { Direct Labor Hours }\\\text { Standard } & 15 & 10 & 750 \\\text { Del uxe } & 35 & 15 & 500 \\\text { Overhead costs } & \$ 16,500 & \$ 23,500 \end{array}$
-Number of setups and number of components are identified as activity-cost drivers for overhead.Assuming an activity-based costing system is used,what is the total amount of overhead cost assigned to the standard model?

• A) $13,450
• B) $14,350
• C) $14,650
• D) $15,150

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Definitions:

Acquisition

The act of obtaining control of another company by purchasing its shares or assets.

Merger

The act of amalgamating two distinct entities into a single organization, often aimed at enhancing competitive position and operational efficiency.

Acquiring Firm

A firm that acquires or gains control over another business by means of a merger, acquisition, or takeover.

Parent

The controlling company in a group of companies, which owns a controlling interest in one or more subsidiaries.