Andiamo Manufacturing Produces Two Types of Tablets: Basic and Deluxe

question 135

Multiple Choice

Andiamo Manufacturing produces two types of tablets: basic and deluxe. The tablets are produced using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows:
$$\begin{array} { l r r r r } \text { Product } & \text { Machine Hours } & \text { Setups } & \text { Receiving Orders } & \text { Packing Orders } \\\text { basic } & 20,000 & 200 & 100 & 800 \\\text { deluxe } & 20,000 & 500 & 400 & 4,000 \\\text { Costs } & \$ 80,000 & \$ 60,000 & \$ 10,000 & \$ 30,000\end{array}$$
-Refer to the Figure.Suppose Andiamo uses only machine hours to calculate a plantwide overhead rate.What would be the total overhead assigned to the basic tablets?

• A)$60,000
• B)$80,000
• C)$90,000
• D)$180,000

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Definitions:

Species Specific

Characteristics or behaviors that are unique to a particular species.

Hybrid Inviability

A postzygotic barrier where offspring resulting from the mating of two different species die prematurely due to genetic incompatibilities.

Alloploid

An organism having two or more sets of chromosomes that are derived from two different species.

Chromosomes

Proteinous, string-like entities situated in the cell nucleus of animals and plants, containing a single DNA molecule.