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

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Definitions:

Richmond Hill

A town in South-Central Ontario, Canada, part of the Greater Toronto Area.

Standard Deviation

A gauge of the extent to which a collection of numbers varies or is spread out.

Mean Weight

The average weight of a set of objects or individuals, calculated by summing their weights and dividing by the number of objects or individuals.

Standard Deviation

It quantifies the amount of variation or dispersion of a set of data values from its mean, serving as an indicator of the data's spread.