Minon,Inc ,Manufactures and Sells Two Products: Product J1 and Product

question 76

Multiple Choice

Minon,Inc. ,manufactures and sells two products: Product J1 and Product E7.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 $19.90 per DLH.The direct materials cost per unit for each product is given below: 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 J1 under activity-based costing is closest to:

• A)$257.10 per unit
• B)$511.70 per unit
• C)$521.17 per unit
• D)$545.79 per unit

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Definitions:

Third-party Payer

An entity (usually an insurance company or government agency) that pays medical expenses on behalf of the patient.

Elective Procedure

A medical procedure that is not required to sustain life but is requested for payment to the third-party payer by the patient or physician. Some elective procedures are paid for by third-party payers, whereas others are not.

Predetermination

The act of deciding or establishing something in advance or having a predetermined outcome.

Third-party Payer

An entity (other than the patient or healthcare provider) responsible for paying medical expenses, such as insurance companies.