Nichols Inc

question 54

Multiple Choice

Nichols Inc.manufactures remote controls.Currently the company uses a plant-wide rate for allocating manufacturing overhead.The plant manager is considering switching-over to ABC costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows:

The current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $600 per labor hour.
What are the indirect manufacturing costs per remote control assuming an activity-based-costing method is used and a batch of 100 remote controls are produced? The batch requires 460 parts,5 direct manufacturing labor hours,and 18 minutes of inspection time.

• A)$6.00 per remote control
• B)$13.30 per remote control
• C)$32.00 per remote control
• D)$1,330.00 per remote control

---

Definitions:

Therapeutic Success

The achievement of desired outcomes or improvements in symptoms and quality of life through any form of therapy or treatment.

Cognitive Therapy

A type of psychotherapy that addresses negative patterns and distortions in the way we look at the world and ourselves.

Free Association

A psychoanalytic process in which a patient says whatever comes to mind without censorship, used to explore the unconscious.

Positive Transference

In psychotherapy, the phenomenon where a patient projects positive feelings towards the therapist, often mirroring past relationships.