Andiamo
Andiamo Manufacturing Produces Two Types of Tablets: Basic and Deluxe

question 2

Multiple Choice

Andiamo
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 manufacturing overhead activities, their costs, and the other related data are as follows: $$\begin{array} { l l l l l } \text { Product } & \text { Machine Hours } & \text { Setups } & \text { Receiving Orders } & \text { Packing Orders } \\\text { basic } & 20,000 & 200 & 100 & 800 \\\text { deluxe } & 20,000 & 500 & 400 & 4,000 \\\text { Costs } & \$ 80,000 & \$ 60,000 & \$ 10,000 & \$ 30,000\end{array}$$
-Refer to Andiamo Manufacturing. What is the activity rate for packing that is based on packing orders?

• A) $1.20 per packing order
• B) $6.25 per packing order
• C) $9.00 per packing order
• D) $10.00 per packing order

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Definitions:

Financial Control

A management function that focuses on monitoring and directing an organization's financial resources and operations to meet its objectives.

Ethical Failure

Situations where individuals or organizations fail to act in a morally right or legally prescribed manner, leading to harm or corruption.

Business Incubators

Organizations designed to accelerate the growth and success of entrepreneurial companies through an array of business support resources and services.

Business Accelerators

Organizations or programs that offer support services and funding opportunities to startups or early-stage businesses to spur their growth.