A Firm Produces and Sells Two Products, Plus and Max

question 122

Multiple Choice

A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhead) : Using direct labor hours as the allocation base, the setup cost portion of overhead that is allocated to each unit of product for Plus and Max, respectively is:

• A) $.80; $.80.
• B) $3.20; $3.20.
• C) $4.00; $4.00.
• D) $160.00; $12,800.00.
• E) $200.00; $16,000.00.

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Definitions:

Coronary Behavior Pattern

Often associated with Type A behavior, it describes personality traits including aggressiveness, competitiveness, and a sense of urgency, which are thought to increase heart disease risk.

General Adaptation Syndrome

A theoretical model that explains the body's stress response in three stages: alarm, resistance, and exhaustion.

Parasympathetic Division

The branch of the ANS that is most active during processes (such as digestion) that restore the body’s reserves of energy.

Autonomic Nervous System

A part of the peripheral nervous system that controls involuntary body functions, including heart rate, digestion, and respiratory rate, comprising the sympathetic and parasympathetic nervous systems.