Andiamo Manufacturing Produces Two Types of Tablets: Basic and Deluxe

question 135

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 only machine hours to calculate a plantwide overhead rate.What would be the total overhead assigned to the basic tablets?

• A)$60,000
• B)$80,000
• C)$90,000
• D)$180,000

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Definitions:

Personnel

The employees or staff members working in an organization, often referred to in the context of human resources.

Human Resources

The division of a company focused on overseeing, managing, and developing its workforce.

Employment Office

An agency or department that provides assistance to job seekers and employers, including job matching and career counseling.

Line Management

An organizational structure in which a manager oversees a direct line of employees responsible for achieving the organization’s core objectives.