HiTech Products Manufactures Three Types of Remote-Control Devices: Economy, Standard

question 57

Multiple Choice

HiTech Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers) . Each activity, its budgeted cost, and related cost driver is identified below. $\begin{array}{lrl}\text { Activity } & \text { Cost } & \text { Cost Driver }\\\text { Material handling } & \$ 225,000 & \text { Number of parts } \\\text { Material insertion } & 2,475,000 & \text { Number of parts } \\\text { Automated machinery } & 840,000 & \text { Machine hours } \\\text { Finishing } & 170,000 & \text { Direct labor hour } \\\text { Packaging } & 170,000 & \text { Orders shipped }\\\text { Total }&\$3,880,000\end{array}$ The following information pertains to the three product lines for next year: $\begin{array}{lrrr}&\text { Economy }&\text { Standard}&\text { Deluxe }\\\text { Units to be produced } & 10,000 & 5,000 & 2,000 \\\text { Orders to be shipped } & 1,000 & 500 & 200 \\\text { Number of parts per unit } & 10 & 15 & 25 \\\text { Machine hours per unit } & 1 & 3 & 5 \\\text { Labor hours per unit } & 2 & 2 & 2\end{array}$
What is HiTech's pool rate for the finishing activity?

• A) $5.00 per labor hour.
• B) $5.00 per machine hour.
• C) $5.00 per unit.
• D) $7.50 per unit.
• E) None of the other answers is correct.

Recognize the primary goals associated with different therapeutic approaches.

Identify the key principles and techniques used in cognitive and behavior therapies.

Understand the importance of therapist-client interactions in different therapeutic modalities.

Recognize the role of irrational beliefs and cognitive restructuring in rational-emotive therapy.

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Definitions:

Covariance Value

A measure indicating the extent to which two variables change together, showing if increases in one variable correspond to increases in another.

Correlation Coefficient

A quantitative indicator showing both the magnitude and direction of a linear association between a pair of variables.

Linear Relationship

A type of association where changes in an independent variable result in proportional changes in a dependent variable, represented by a straight line in graph form.

Covariance

A measure that determines the degree to which two variables change together.