Figure 4-15 Quint Manufacturing Uses an Activity-Based Costing System

question 105

Multiple Choice

Figure 4-15 Quint Manufacturing uses an activity-based costing system.The company produces Model 1 and Model 2.Information relating to the two products is as follows:
The following costs are reported:

-Refer to Figure 4-15.Setup costs assigned to Model 2 are

• A) $36,000.
• B) $35,000.
• C) $28,000.
• D) $25,000.

---

Definitions:

Annual Profit

The total earnings or surplus of an organization, company, or individual after all expenses and costs are deducted from total revenues over one year.

Strategy Cooperation

A cooperative approach in strategic decision-making where entities align their strategies for mutual benefit.

Payoffs

Payoffs refer to the outcomes or potential returns from making a particular decision or investment in various contexts, including economics, game theory, and finance.

Annual Profits

The total income a company generates in one fiscal year after all expenses and taxes have been subtracted from its total revenue.