Figure 4-16 Samson Company Recently Installed an Activity-Based Relational Database

question 120

Multiple Choice

Figure 4-16 Samson Company recently installed an activity-based relational database. Using the information contained in the activity relational table, the following pool rates were computed:
$400 per purchase order
$24 per machine hour, Process 1
$30 per machine hour, Process 2
$80 per engineering hour
Two products are produced by Special Products: L and M. The plant has two manufacturing processes, Process 1 and Process 2. Other processes include engineering, product handling, and procurement. Product L goes through Process 1 while Product M goes through Process 2. The product relational table for Special Products is as follows:
Refer to Figure 4-16. How much machine overhead cost will be assigned to Product L using Process 1?

• A) $2,400,000
• B) $4,800,000
• C) $1,920,000
• D) $240,000

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Definitions:

Intellectual Property

A category of property that includes intangible creations of the human intellect, such as inventions, literary and artistic works, designs, and symbols.

Tradable Property

Assets that can be easily bought, sold, or traded on various markets.

Suggestive Mark

A type of trademark that suggests rather than describes a characteristic of the goods or services to which it is attached, requiring consumer imagination to discern the nature.

Imagination

The ability of the mind to be creative or resourceful, often referred to in contexts beyond legal or technical definitions.