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

question 86

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 overhead cost per Chair using the traditional costing system would be closest to

• A) $39.17.
• B) $21.75.
• C) $19.58.
• D) $18.01.

Understand ethical and social responsibility issues in the workplace.

Recognize discrimination and barriers to equality within organizations.

Understand the concept and importance of intellectual capital.

Acquire knowledge about the structure and classifications of management and organizations.

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Definitions:

Bad Decisions

Choices made that lead to undesirable outcomes due to poor judgment, lack of information, or failure to anticipate consequences.

Insufficient Financing

A situation where the available financial resources are not adequate to support the current operations or growth plans of a business.

Maintaining Operations

The ongoing activities required to keep a system, process, or piece of equipment running effectively.

Access to Customers

The ability of a business to reach and interact with its target audience, essential for marketing, sales, and customer service.