Figure 4-16 Newman Company Recently Installed an Activity-Based Relational Database

question 39

Multiple Choice

Figure 4-16 Newman Company recently installed an activity-based relational database.Using the information contained in the activity relational table, the following pool rates were computed:
$400 per purchase order
$24 per machine hour, Process 1
$30 per machine hour, Process 2
$80 per engineering hour
Two products are produced by Special Products: X and Y.The plant has two manufacturing processes, Process 1 and Process 2.Other processes include engineering, product handling, and procurement.Product X goes through Process 1 while Product Y goes through Process 2.The product relational table for Special Products is as follows:

- Refer to Figure 4-16.How much purchasing overhead cost will be assigned to Product X using the number of purchase orders?

• A) $ 100,000
• B) $ 50,000
• C) $80,000,000
• D) $ 133,500

---

Definitions:

Lease Term

The duration for which a lease agreement remains effective, typically stated in months or years.

Constructive Eviction

An eviction that occurs when a property has become unsuitable for use due to the unlivable quality of the property.

Leak

The unauthorized release of confidential information or the escape of a liquid or gas through a hole or crack.

Landlord

A person or entity that owns property and rents it out to individuals or businesses, often under a lease agreement.