Summer Ice Pty Ltd Is a Manufacturer of a Range

question 71

Multiple Choice

Summer Ice Pty Ltd is a manufacturer of a range of ice cream products. The following is a list of activities, costs and quantities of activity drivers for a number of activities that occur in the factory.
Under an activity-based costing system, what is the activity cost per unit of activity driver for measuring ingredients?

• A) $12.90
• B) $15.00
• C) $13.80
• D) $14.00

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Definitions:

Pension Plan Distributions

Payments made from a pension plan to the beneficiary, retiree, or employee, which can be taxable or non-taxable depending on the plan type and contribution history.

Roth IRA

A type of individual retirement account allowing taxed contributions but offering tax-free growth and tax-free withdrawals in retirement under certain conditions.

Compensation

Payment or remuneration received by an individual for services performed, which can include wages, salaries, bonuses, and commissions.

Coverdell Education Savings Account

A tax-advantaged saving account designed to pay for education expenses from elementary through post-secondary education.