The Mega Construction Company Recently Switched to Activity-Based Costing (ABC)from

question 88

Multiple Choice

The Mega Construction Company recently switched to activity-based costing (ABC) from the department allocation method.The department method allocated overhead costs at a rate of $60 per machine hour.The cost accountant for the Finishing Department has gathered the following data:
$$\begin{array} { | l | l | r | } \hline \text { Activity } & \text { Cost Drivers } & \text { Rate } \\\hline \text { Material handling } & \text { Tons of material handled } & \$ 80 \\\hline \text { Machine setups } & \text { Number of production runs } & 3,750 \\\hline \text { Utilities } & \text { Machine hours } & 25 \\\hline \text { Quality control } & \text { Number of inspections } & 500 \\\hline\end{array}$$
During April,Mega purchased and used $100,000 of direct materials at $20 per ton.There were eight (8) production runs using a total of 12,000 machine hours in April.The manager of the Finishing Department needed 12 inspections.Actual overhead costs totaled $820,000 for the month.How much overhead costs were applied to the Work-in-Process Inventory during April using traditional costing?

• A) $536,000.
• B) $720,000.
• C) $736,000.
• D) $820,000.

Understand the concept of threshold stimulus and its importance in muscle activation.

Describe the processes of synaptic transmission and action potential propagation in muscle fibers.

Explain how muscle tone is maintained and its physiological importance.

Understand graded responses in muscles, including treppe, tetanus, and wave summation.

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Definitions:

Privity of Contract

A doctrine stating that only the parties involved in a contract have the rights and obligations under that contract.

Financial Statements

Financial statements are formal records of the financial activities and condition of a business, person, or other entity, providing an overview of a company's financial performance and position in the market.

Section 11

A provision of the Securities Act of 1933 that holds issuers liable for material misstatements or omissions in their public offering documents.

Securities Act of 1933

A U.S. law enacted to protect investors by requiring transparency in financial statements so investors can make informed decisions about investments.