Solved

Marion Manufacturing Uses an Activity-Based Costing System Machine-Related Overhead Would Be Classified as a
A)unit-Level Activity

Question 141

Multiple Choice

Marion Manufacturing uses an activity-based costing system. The company produces Model X and Model Y. Information relating to the two products is as follows:  Model X  Model Y  Units produced 20,00040,000 Machine hours 8,00010,000 Direct labor hours 14,00016,000 Engineering labor (hours)  1,0001,400 Setups 4060 The following costs are reported:  Engineering $48,000 Setups 100,000 Machine-related overhead 144,000\begin{array}{l}\begin{array} { l r r } & \text { Model X } & \text { Model Y } \\\text { Units produced } & 20,000 & 40,000 \\\text { Machine hours } & 8,000 & 10,000 \\\text { Direct labor hours } & 14,000 & 16,000 \\\text { Engineering labor (hours) } & 1,000 & 1,400 \\\text { Setups } & 40 & 60\end{array}\\\text { The following costs are reported: }\\\begin{array} { l l } \text { Engineering } & \$ 48,000 \\\text { Setups } & 100,000 \\\text { Machine-related overhead } & 144,000\end{array}\end{array} Machine-related overhead would be classified as a


A) unit-level activity.
B) batch-level activity.
C) product-level activity.
D) facility-level activity.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents