Extracts from Cost Information of Hebar Corp

question 73

Multiple Choice

Extracts from cost information of Hebar Corp.:

Assuming that setup-hours is considered a more effective cost drive for allocating setup costs than direct labor-hours.Which of the following statements is true of Hebar's setup costs under traditional costing?

• A)L3 pack is undercosted by $5,850
• B)L7 pack is undercosted by $5,750
• C)L3 pack is overcosted by $5,850
• D)L7 pack is overcosted by $5,850

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Definitions:

Sterile Drape

A sterile covering used in surgical procedures to prevent contamination of the surgical site.

Hand Antiseptics

Products used to cleanse hands, killing or inhibiting the growth of microorganisms to prevent infection.

Sterile Drape

A sterile covering used in medical procedures to maintain a sterile field by isolating the operative area from possible contaminants.

Surgical Asepsis

Techniques used to maintain a sterile environment in order to prevent infection during surgical procedures.