Machuga,Inc

question 106

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: If the company allocates all of its overhead based on direct labor-hours using its traditional costing method,the overhead assigned to each unit of Product C1 would be closest to:

• A)$337.32 per unit
• B)$615.60 per unit
• C)$918.18 per unit
• D)$886.41 per unit

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Definitions:

Inductive

A systematic approach where multiple assertions, believed or generally accepted as true, are amalgamated to arrive at a targeted conclusion.

Deductive

A logical process where a conclusion follows necessarily from the stated premises, moving from general principles to specific instances.

Reductive

Pertaining to or employing reduction; often referring to explanations or methods that simplify complex phenomena by breaking them down into their components.

Centration

A term from cognitive psychology describing a tendency in young children to focus on one aspect of a situation and neglect others.