Andiamo
Andiamo Manufacturing produces two types of tablets: basic and deluxe. The tablets are produced using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The manufacturing overhead activities, their costs, and the other related data are as follows: $$\begin{array} { l l l l l }
\text { Product } & \text { Machine Hours } & \text { Setups } & \text { Receiving Orders } & \text { Packing Orders } \
\text { basic } & 20,000 & 200 & 100 & 800 \
\text { deluxe } & 20,000 & 500 & 400 & 4,000 \
\text { Costs } & \$ 80,000 & \$ 60,000 & \$ 10,000 & \$ 30,000
\end{array}$$
-Refer to Andiamo Manufacturing. Suppose the company uses an activity rate for receiving that is based on receiving orders. What would be the receiving costs allocated to the basic?
A) $1,200
B) $1,600
C) $1,800
D) $2,000

Question

Andiamo
Andiamo Manufacturing produces two types of tablets: basic and deluxe. The tablets are produced using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The manufacturing overhead activities, their costs, and the other related data are as follows: $$\begin{array} { l l l l l } 
\text { Product } & \text { Machine Hours } & \text { Setups } & \text { Receiving Orders } & \text { Packing Orders } \
\text { basic } & 20,000 & 200 & 100 & 800 \
\text { deluxe } & 20,000 & 500 & 400 & 4,000 \
\text { Costs } & \$ 80,000 & \$ 60,000 & \$ 10,000 & \$ 30,000
\end{array}$$
-Refer to Andiamo Manufacturing. Suppose the company uses an activity rate for receiving that is based on receiving orders. What would be the receiving costs allocated to the basic?
A) $1,200
B) $1,600
C) $1,800
D) $2,000

Quizplus · Accepted Answer

The Answer of Andiamo
Andiamo Manufacturing produces two types of tablets: basic and deluxe. The tablets are produced using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The manufacturing overhead activities, their costs, and the other related data are as follows: $$\begin{array} { l l l l l } 
\text { Product } & \text { Machine Hours } & \text { Setups } & \text { Receiving Orders } & \text { Packing Orders } \
\text { basic } & 20,000 & 200 & 100 & 800 \
\text { deluxe } & 20,000 & 500 & 400 & 4,000 \
\text { Costs } & \$ 80,000 & \$ 60,000 & \$ 10,000 & \$ 30,000
\end{array}$$
-Refer to Andiamo Manufacturing. Suppose the company uses an activity rate for receiving that is based on receiving orders. What would be the receiving costs allocated to the basic?
A) $1,200
B) $1,600
C) $1,800
D) $2,000

Andiamo Andiamo Manufacturing Produces Two Types of Tablets: Basic and Deluxe

Andiamo
Andiamo Manufacturing Produces Two Types of Tablets: Basic and Deluxe