Figure 4-12 Vaughn, Inc

question 4

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.
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Refer to Figure 4-12.If kilowatt hours are used to assign power costs, the amount of power costs assigned to Job 10A would be

• A) $33.20.
• B) $30.00.
• C) $102.00.
• D) $53.32.

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Definitions:

Emissions Tax

A tax imposed on the emission of pollutants, aimed at reducing environmental harm.

Optimal Tax

A tax system designed to achieve the best balance between efficiency and equity.

Marginal Social Benefit

The supplementary gain for society derived from the consumption of one extra unit of a good or service.

Marginal Social Cost

The cost to society of producing an additional unit of a good or service, including both private costs and any externalities.