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

question 169

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 deluxe model?

• A) $25,650
• B) $24,350
• C) $26,550
• D) $25,350

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.

Cash Cycle

The duration between the outlay of cash for purchasing inventory and the receipt of cash from customer sales, indicating liquidity.

Accounts Payable Period

The mean duration for a company to settle payments with its suppliers and vendors.