A Company Identified the Following Partial List of Activities, Costs

question 132

Multiple Choice

A company identified the following partial list of activities, costs, and activity drivers expected for the next year.
$$\begin{array}{l}\begin{array} { | l | c | c | } \hline \text { Activity } & \text { Expected Costs } & \text { Cost Driver } \\\hline \text { Extrusion Costs } & \$ 83,600 & \text { Number batches made } \\\hline \text { Handling Costs } & \$ 8,800 & \text { Number of orders filled } \\\hline \text { Packaging Costs } & \$ 40,500 & \text { Number of units made } \\\hline\end{array}\\\begin{array} { | l | c | c | } \hline & \text { Product A } & \text { Product B } \\\hline \text { Production volume } & 750,000 \text { units } & 600,000 \text { units } \\\hline \text { Batches made } & 200 \text { batches } & 750 \text { batches } \\\hline \text { Orders filled } & 75 & 200 \\\hline\end{array}\end{array}$$
How much overhead in total will be assigned to the Product A line?

• A) $42,500.
• B) $132,900.
• C) $90,400.
• D) $66,000.
• E) $66,450.

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Definitions:

Real Per Capita Output

The total real output of an economy divided by the population, measuring the average economic output per person in real terms, adjusted for inflation.

Real Output

The quantity of goods and services produced, adjusted for inflation, reflecting the actual productivity of an economy.

Real GDP

Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year, the index expressed as a decimal.

Per Capita GDP

The total Gross Domestic Product of a country divided by its population, indicating the average economic output per person.