An Activity Analysis Has Shown That the Number of Components

question 44

Short Answer

An activity analysis has shown that the number of components added to Product X and Product Y is the cost driver for support costs.Support costs are $20 per component.Product X has 4 components and Product Y has 8 components.What amounts of support costs should be assigned to Product X and Product Y?
$\begin{array}{lll}&\text { Product X }&\text { Product Y }\\\text { A) } & \$ 6.67 & \$ 13.33 \\\text { B) } & \$ 20 & \$ 20 \\\text { C) } & \$ 80 & \$ 160 \\\text { D) } & \$ 80 & \$ 320\end{array}$

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Definitions:

Agencies

Governmental organizations established to undertake specific, sector-focused duties and responsibilities within the broader public administration framework.

Programs

Organized efforts or plans of action designed to achieve specific goals or outcomes, such as social services, educational curricula, or government initiatives.

Gerald Nye

A U.S. Senator known for his investigations in the 1930s into the profit motives behind America's involvement in World War I.

Congressional Hearings

Meetings or sessions held by the United States Congress to gather information, review and evaluate legislation, and conduct oversight on government operations.