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

question 197

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 M using Process 2?

• A) $2,400,000
• B) $1,920,000
• C) $240,000
• D) $300,000

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Definitions:

Buffer

A buffer is a region of memory used to temporarily hold data while it is being moved from one place to another within a computer system.

Positive Frame of Mind

A mental attitude focusing on the good aspects of a situation, often linked to more effective problem-solving and decision-making.

Bad News Messages

Communications that convey unfavorable or disappointing information to the receiver, requiring careful crafting to minimize negative reactions.

Prompt Delivery

Quick and efficient provision or supply of goods, services, or information.