CompInc Produces Two Products: a High-End Laptop Computer and an Inexpensive

question 9

Multiple Choice

CompInc. produces two products: a high-end laptop computer and an inexpensive laptop. The two products use two overhead activities, which have the following costs:
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.
$\begin{array}{lr}\text { Setting up equipment } & \$ 8,000 \\\text { Machining } & 48,000\end{array}$ $$\begin{array} { l r r } & \text { High-end } & \text { Inexpensive } \\\text { Direct Labour } & \$ 24,000 & \$ 8,000 \\\text { Direct Materials } & 15,000 & 4,000 \\\text { Units } & 2,000 & 2,000 \\\text { Machine Hours } & 1,000 & 3,000 \\\text { Setup Hours } & 150 & 50\end{array}$$
-Refer to the Figure.What is the overhead cost per unit for each inexpensive laptop,when using overhead rates that are based on machine hours and setup hours?

• A)$21.00 per unit
• B)$19.00 per unit
• C)$12.00 per unit
• D)$10.00 per unit

Grasp the concepts of bond interest payments and how to journalize these transactions properly.

Comprehend the amortization of bond discount and premium using straight-line and effective interest rate methods.

Identify and explain the terms and characteristics of different types of bonds, such as callable, convertible, and term bonds.

Understand the redemption of bonds before maturity and the associated accounting entries.

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Definitions:

Self-perception Theory

A psychological theory suggesting that individuals develop their attitudes and feelings by observing their own behavior and concluding what attitudes must have caused them.

Symbolic Interactionism

A sociological perspective stressing the importance of symbolic communication and how social reality is constructed through interaction in social contexts.

Social Role Theory

The theory that much of social behavior is determined by societal expectations and norms associated with each individual's roles.

Self-perception Theory

A psychological theory that suggests individuals develop their attitudes and feelings by observing their own behavior and concluding what attitudes must have caused it.