Use the Information Below to Answer the Following Question(s)

question 74

Multiple Choice

Use the information below to answer the following question(s) :
Kepple Manufacturing currently uses a traditional costing system. The company allocates overhead to its two products, Zips and Dees, using a predetermined manufacturing overhead rate based on direct labour hours. Here is data related to the company's two products:
Information about the company's estimated manufacturing overhead for the year follows:
Additional information about production needed for the activity-based costing system follows:
Expected Activity

-The amount of manufacturing overhead that would be allocated to one unit of Zips using an activity-based costing system would be closest to

• A) $32.86.
• B) $51.12.
• C) $64.81.
• D) $11.95.

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Definitions:

General Equilibrium Analysis

Simultaneous determination of the prices and quantities in all relevant markets, taking feedback effects into account.

Partial Equilibrium Analysis

Determination of equilibrium prices and quantities in a market independent of effects from other markets.

Movie Theater Tickets

Physical or electronic vouchers that grant the holder the right to enter a movie theater and view a film.

Efficient Allocation

The optimal distribution of resources among competing needs or uses in a way that maximizes the net benefit achieved from those resources.