Machuga, Inc

question 159

Multiple Choice

Machuga, Inc., manufactures and sells two products: Product C1 and Product M2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $18.70 per DLH. The direct materials cost per unit is $297.00 for Product C1 and $246.20 for Product M2. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The overhead applied to each unit of Product C1 under activity-based costing is closest to:

• A)$918.18 per unit
• B)$541.70 per unit
• C)$1,013.40 per unit
• D)$921.77 per unit

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Definitions:

Repudiates

To reject or deny the validity or authority of something, often associated with contracts or obligations.

Lost Profits

Potential revenue that a business did not earn, often due to breaches of contract, infringement, or other wrongful acts.

Inventory

The complete list of items such as merchandise, raw materials, and products that are in stock within a business's possession.

Credentialization

Refers to the increasing demand for formal educational qualifications or credentials for employment or social status.