Answer the Following Questions Using the Information Below:
Comfort Corporation

question 66

Multiple Choice

Answer the following questions using the information below:
Comfort Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled:
$\begin{array}{lrrr}&\text { Number of }&\text { Number of }&\text { Number of } \\\text { Product }&\text { Setups }&\text { Components }&\text { Direct Labor Hours }\\\text { Standard } & 12 & 8 & 255 \\\text { Deluxe } & 28 & 12 & 245 \\\text { Overhead costs } & \$ 52,000 & \$ 78,000 \end{array}$
-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 costs assigned to the deluxe model?

• A) $84,400
• B) $83,200
• C) $82,600
• D) $80,800

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Definitions:

Form Utility

Form utility refers to the value or usefulness that a product gains from its form or design, enhancing its desirability to users.

Time Utility

The economic value added to goods and services by making them available at the most convenient time for consumers.

Direct Channel

A distribution method where products or services are sold directly from the producer to the consumer, without intermediaries.

Channel Functions

The activities and roles that marketing channels perform to move products from producers to consumers, including logistics, information sharing, and negotiation.