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:

Verbalism

An excessive focus on words rather than on substance or reality, often resulting in empty talk or jargon.

Paraphrasing

the process of rewording or rephrasing a text or passage to achieve clearer understanding without changing its original meaning.

Focus

The center of interest or activity; to concentrate attention or efforts on a particular object or activity.

Room Lights

Lighting fixtures and arrangements designed to illuminate an interior space, affecting its ambiance and functionality.