Mcleese,Inc

question 156

Multiple Choice

Mcleese,Inc. ,manufactures and sells two products: Product I6 and Product L1.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 $26.60 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 activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:

• A)$103.32 per setup
• B)$63.58 per setup
• C)$89.04 per setup
• D)$100.60 per setup

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Definitions:

Finance

The management of large amounts of money, especially by governments or large companies, including activities such as investing, borrowing, lending, budgeting, and saving.

Logistics

The detailed coordination and implementation of complex operations, often relating to the transportation and storage of goods from point of origin to point of consumption.

Production

The process of creating goods and services, involving the transformation of inputs into finished products.

Enterprise Resource Planning (ERP)

Integrated management software systems used by organizations to manage day-to-day business activities, such as accounting, procurement, project management, and manufacturing.