Andiamo Manufacturing Produces Two Types of Tablets: Basic and Deluxe

question 82

Multiple Choice

Andiamo Manufacturing produces two types of tablets: basic and deluxe. The tablets are produced using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows:
$$\begin{array} { l r r r r } \text { Product } & \text { Machine Hours } & \text { Setups } & \text { Receiving Orders } & \text { Packing Orders } \\\text { basic } & 20,000 & 200 & 100 & 800 \\\text { deluxe } & 20,000 & 500 & 400 & 4,000 \\\text { Costs } & \$ 80,000 & \$ 60,000 & \$ 10,000 & \$ 30,000\end{array}$$
-Refer to the Figure.Suppose Andiamo uses an activity rate for receiving that is based on receiving orders.What would be the receiving costs allocated to the basic?

• A)$1,200
• B)$1,600
• C)$1,800
• D)$2,000

Synthesize information to determine the most financially viable options when presented with multiple financial scenarios.

Evaluate the impact of compounding frequency on investment returns and loan costs.

Demonstrates proficiency in using a financial calculator for complex financial problem-solving.

Understand the principles of compound interest and its application in calculating loan payments.