Twista Manufacturing Has the Following Activities and Activity Costs Per

question 78

Multiple Choice

Twista Manufacturing has the following activities and activity costs per year: Machining ($20 000) ; Forklifting ($10 000) ; machine setup ($32 000) , and quality inspection ($40 000) . The operation starts with setting up the machines; each batch of products requires a different setup. This is followed by machining, where the cost of machining varies directly with the number of machine hours. Forklifts are used to move the work in progress around. Because quality is important, an inspection is carried out for each batch of products.
The following information is also available:
Number of machine hours per year: 20 000 machine hours
Number of forklift moves per year: 500 moves
Number of batches per year: 4000 batches
Each year, Twista Manufacturing produces 5000 units of Product X. These units of Product X require 5000 machine hours, 120 moves and 500 batches to produce. The direct materials and direct labour together cost $15 per unit of Product X.
The machining costs and quality inspection costs allocated to each unit of Product X are:

• A) $0.16 and $0.32
• B) $1 and $2
• C) $0.5 and $1
• D) $1 and $1

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Definitions:

Physiological Arousal

The body's acute response to stimuli or stress, involving increased physiological activity like heart rate, blood pressure, and energy levels.

Emotional Experience

The complex, subjective state involving thoughts, feelings, and physiological changes that respond to external or internal events.

James-Lange Theory

A theory suggesting that emotions are the result of physiological responses to external events, where our emotional experience arises from our recognition of bodily reactions.

Cannon-Bard Theory

A theory of emotion that posits emotions and physiological responses occur simultaneously, not sequentially.