Use This Information for Swan Company to Answer the Questions

question 133

Multiple Choice

Use this information for Swan Company to answer the questions that follow.

Swan Company produces a product at a total cost of $43 per unit. Of this amount, $8 per unit is selling and administrative costs. The total variable cost is $30 per unit, and the desired profit is $20 per unit.
-What is the total overhead allocated to Product A using activity-based costing?

• A) $194,500
• B) $162,500
• C) $32,000
• D) $224,000

---

Definitions:

Bias For Action

A business principle encouraging quick decision making and the initiation of actions without unnecessary delay.

Marketing Program Implementation

The execution phase of a marketing strategy where plans and concepts are put into action.

Line Positions

Roles or jobs within an organization that are directly involved in the core activities leading to the creation or delivery of the product or service.

Staff Positions

Roles within an organization that support the line functions indirectly, providing expertise, advice, and support to direct operations.