Quick Start Engines Has Two Departments, Assembly and Testing

question 103

Multiple Choice

Quick Start Engines has two departments, Assembly and Testing. You are given the following information about the costs of 5 activities that occur at the manufacturing plant monthly: Activity Total Costs Volume of Cost Driver
Material handling $100,000 200,000 parts
Supervision of direct labour 105,000 70 employees
Janitorial and cleaning 150,000 3,000 hours
Machining 240,000 6,000 machine hours
Total costs $595,000
The above activities are used by the two departments as follows:
Assembly Testing
Material handling 150,000 parts 50,000 parts
Supervision of direct labour 30 employees 40 employees
Time spent cleaning 2,000 hours 1,000 hours
Number of machine hours 4,000 machine hours 2,000 machine hours
How much of the janitorial costs will be allocated to Testing?

• A)$25,000
• B)$75,000
• C)$100,000
• D)$50,000

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Definitions:

Randomized Control Trials

A study design in research where participants are randomly assigned to either the group receiving the treatment under investigation or to a group receiving a standard treatment or placebo.

Efficacy

The ability to produce a desired or intended result, often used in the context of a treatment's effectiveness.

Experimenter Bias

A process where the scientists performing the research influence the results, in order to portray a certain outcome.

Placebo Effects

Psychological or physiological responses seen in individuals receiving an inert treatment, attributed to the belief in the treatment’s efficacy.