Answer the Following Questions Using the Information Below:
Xylon Corp

question 160

Multiple Choice

Answer the following questions using the information below:
Xylon Corp. has contracts to complete weekly supplements required by forty-six customers. For the year 2015, manufacturing overhead cost estimates total $840,000 for an annual production capacity of 10 million pages.
For 2015, Xylon decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis:
$\begin{array}{lrc}\text { Cost pool }&\text { Manufacturing overhead costs }&\text { Activity level }\\\text { Design changes } & \$ 160,000 & 200 \text { design changes } \\\text { Setups } & 670,000 & 4,000 \text { setups } \\\text { Inspections } & \underline{80,000} & 16,000 \text { inspections } \\\text { Total manufacturing overhead costs } & \$ 910,000 &\end{array}$ During 2015, two customers, Money Managers and Hospital Systems, are expected to use the following printing services:
$$\begin{array} { l r r } \text { Activity } & \text { Money Managers } & \text { Hospital Systems } \\\text { Pages } & 60,000 & 76,000 \\\text { Design changes } & 10 & 2 \\\text { Setups } & 20 & 10 \\\text { Inspections } & 30 & 38\end{array}$$
-Under ABC costing,what is the inspection cost allocated to Xylon Corp.?

• A) $190
• B) $160
• C) $150
• D) $180

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Definitions:

Fear-Provoking Situation

A circumstance or setting that induces a response of fear or anxiety, often leading to avoidance or defensive behaviors.

Escape Response

A behavioral reaction to avoid or get away from a threatening or uncomfortable situation.

Flooding

A behavioral therapy technique used for treating phobias and anxiety disorders by exposing the patient to their anxiety source without any danger, in order to overcome their anxiety.

Exposed

Made visible or uncovered, potentially leading to harm, risk, or understanding.