A Firm Produces and Sells Two Products, Mica and Plax

question 54

Multiple Choice

A firm produces and sells two products, Mica and Plax. The following information is available relating to setup costs (a part of factory overhead) : Using number of setups as the activity base, the amount of setup cost allocated to each unit of product for Mica and Plax, respectively is:

• A) $21.60; $.54.
• B) $54.00; $27.00.
• C) $60.00; $60.00.
• D) $108.00; $2.70.
• E) $200.00; $16,000.00

---

Definitions:

Ethical Dilemmas

Situations in which a person is required to choose between two conflicting moral principles, making it difficult to decide the right course of action.

Proactive Approach

Anticipating and planning for future challenges or opportunities rather than reacting to events as they occur.

Reactive Approach

A method where actions or decisions are taken in response to events or situations rather than by initiating them.

International Businesses

Companies that operate across national borders, engaging in international trade or investment.