Figure 4-12 Vaughn, Inc

question 154

Multiple Choice

Figure 4-12 Vaughn, Inc., has identified the following overhead costs and activity drivers for next year:
The following are two of the jobs completed during the year:
The company's normal activity is 2,000 direct labor hours.
-
Refer to Figure 4-12.If the number of setups is used to assign setup costs, the amount of setup costs assigned to Job 10A would be

• A) $1,600.
• B) $1,000.
• C) $800.
• D) $1,680.

---

Definitions:

Marginal Product

The additional output that is generated by employing one more unit of input, such as labor or capital, in the production process.

Optimal Labor Employment

The level at which the addition of one more employee maximizes the organization's net productivity and profit.

Marginal Expenditure

The incremental cost associated with the purchase of an additional unit of a good or service.

Marginal Product

The increase in output that arises from an additional unit of input.