Flowing Wells Corporation Is Preparing Its Annual Budget

question 74

Multiple Choice

Flowing Wells Corporation is preparing its annual budget. As part of its analysis of the contribution of individual products to overall profitability, the controller estimates the amount of overhead that should be assigned to the individual product lines. Budgeted inspection costs are $4,800. Additional information is as follows: Small Pumps Large Pumps
Units inspected 120 120
Hours spent inspecting 2.5 17.5
Direct labour hours per unit 2 2
Under activity-based costing (ABC) , the inspection cost assigned to one small pump would be:

• A)$2.50
• B)$5.00
• C)$12.50
• D)$10.00

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Definitions:

Terminal Values

Reflect a person’s preferences concerning the “ends” to be achieved.

Instrumental Values

Instrumental values reflect a person’s beliefs about the means to achieve desired ends.

Uncertainty Avoidance

A cultural dimension that describes the degree to which members of a society attempt to cope with anxiety by minimizing uncertainty.

Hofstede's Framework

A model that identifies and analyzes five dimensions of cultural differences across countries, impacting workplace behaviors and values.