Franklin Manufacturing Manufactures Two Models of Windows,bay Windows and Casement

question 124

Multiple Choice

Franklin Manufacturing manufactures two models of windows,bay windows and casement windows.Franklin uses an activity-based costing system.The following information about the activities used to produce the company's products has been provided. $$\begin{array} { l c c c c } \text { Category } & \text { Estimated Cost } & \text { Cost Driver } & \text { Bay Windows } & \text { Casement } \\\text { Unit-level } & \$ 125,000 & \text { Labor hours } & 750 & 500 \\\text { Batch-level } & \$ 75,000 & \text { Inspections } & 30 & 20 \\\text { Product-level } & \$ 35,000 & \text { Storage Space } & 3 , 5 0 0 \text { sq feet } & 2,100 \text { sq feet } \\\text { Facility-level } & \$ 165,000 & \text { Machine hours } & 9,000 & \mathbf { 6 , 0 0 0 }\end{array}$$ The amount of product-level cost that should be allocated to the casement windows equals:

• A) $13,125.
• B) $21,875.
• C) $30,000.
• D) $45,000.

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Definitions:

Divisional Structure

An organizational format where operations are grouped based on distinct products or services, markets, or geographic areas, facilitating specialization and flexibility.

Environmental Changes

Alterations in the natural or built environment, often due to human activities or natural processes.

Duplication of Resources

The unnecessary repetition of tools, equipment, or human resources within an organization, leading to inefficiency.

Social Network Analysis

A methodological approach used to analyze social structures through the use of networks and graph theory, identifying how individuals and groups interact.