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

question 128

Multiple Choice

Use the information below to answer the following question(s) :
Menno Corporation manufactures two products-Tables and Chairs. The annual production and sales of Tables is 2,000 units, while 8,000 units of Chairs are produced and sold. The company has traditionally used direct labour hours to allocate its overhead to products. Tables require 1.0 direct labour hours per unit, while Chairs require 0.5 direct labour hours per unit. The total estimated overhead for the period is $235,000. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools:
Expected Activity

-The predetermined overhead allocation rate using the traditional costing system would be closest to:

• A) $43.50 per direct labour hour.
• B) $21.75 per direct labour hour.
• C) $39.17 per direct labour hour.
• D) $14.50 per direct labour hour.

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Definitions:

Invasion of Privacy

A violation or intrusion into an individual's personal life or affairs without consent, which can be subject to legal penalties.

Advertisement

Public communication in various media forms designed to promote or sell a product, service, or idea.

Eavesdropping

Secretly listening to the private conversation of others without their consent.

Appropriation

In law, the unauthorized use of someone's name, likeness, or other personal attributes for commercial gain.