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

question 168

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 an activity-based costing system would be closest to

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Definitions:

Disjunctive Syllogism (DS)

A form of logical argument where, if one has a disjunction (A or B) and knows that A is not true, one can conclude B must be true.

Implication (Imp)

A logical relationship where if the first statement (antecedent) is true, then the second statement (consequent) must also be true.

Quantifier Negation

In logic, the process of negating a quantified statement, which can change the original scope and meaning of the statement.

Universal Generalization

A logical operation that asserts that a property or relation holds for all members of a certain category.