Figure 7-5

Multiple Choice

Figure 7-5. Rizzo Manufacturing produces two types of cameras: 35mm and digital.The cameras 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 overhead activities,their costs,and the other related data are as follows:
Refer to Figure 7-5.Using an activity rate for receiving based on receiving orders,assign receiving costs to the 35mm camera.

A) $1,800
B) $2,000
C) $1,600
D) $1,200
E) $4,000