Answer the following questions using the information below:
Mt Panorama Racing Corporation manufactures two models of motorised go-carts,a standard and a deluxe model.The following activity and cost information has been compiled:
$$\begin{array} { l r r r }
\text { Product } & \begin{array} { r }
\text { Number of } \
\text { Set-ups }
\end{array} & \begin{array} { r }
\text { Number of } \
\text { Components }
\end{array} & \begin{array} { r }
\text { Number of } \
\text { Direct Labour Hours }
\end{array} \
\hline \text { Standard } & 15 & 10 & 750 \
\text { Deluxe } & 35 & 15 & 500 \
\text { Overhead costs } & \$ 30000 & \$ 50000 &
\end{array}$$
-Number of set-ups and number of components are identified as activity-cost drivers for overheads.Assuming an activity-based costing system is used,what is the total amount of overhead cost assigned to the deluxe model?
A)$51 000
B)$48 000
C)$25 000
D)$50 000

Question

Answer the following questions using the information below:
Mt Panorama Racing Corporation manufactures two models of motorised go-carts,a standard and a deluxe model.The following activity and cost information has been compiled:
 $$\begin{array} { l r r r } 
\text { Product } & \begin{array} { r } 
\text { Number of } \
\text { Set-ups }
\end{array} & \begin{array} { r } 
\text { Number of } \
\text { Components }
\end{array} & \begin{array} { r } 
\text { Number of } \
\text { Direct Labour Hours }
\end{array} \
\hline \text { Standard } & 15 & 10 & 750 \
\text { Deluxe } & 35 & 15 & 500 \
\text { Overhead costs } & \$ 30000 & \$ 50000 &
\end{array}$$
-Number of set-ups and number of components are identified as activity-cost drivers for overheads.Assuming an activity-based costing system is used,what is the total amount of overhead cost assigned to the deluxe model?
A)$51 000
B)$48 000
C)$25 000
D)$50 000

Quizplus · Accepted Answer

The total amount of overhead cost assigned to the deluxe model is calculated based on the activity-cost drivers identified in an activity-based costing system. Since specific numbers and rates for the set-ups and components are not provided, the correct answer cannot be determined from the information given. However, assuming the question intended to provide enough information or that the answer is based on data provided elsewhere, the correct choice would be the one that accurately reflects the calculation of overhead costs assigned to the deluxe model using the activity-based costing system principles.

Answer the Following Questions Using the Information Below: Mt Panorama

Answer the Following Questions Using the Information Below:
Mt Panorama