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Ultimate Vision Corporation Ultimate Vision Corporation Has Two Product Lines: LCD Televisions and LCD

Question 94

Multiple Choice

Ultimate Vision Corporation
Ultimate Vision Corporation has two product lines: LCD televisions and projection televisions.The company has budgeted the following production and overhead costs for the upcoming year:

     LCD TV’s  Projection TV’s
Units Produced     1,500  2,250
 Direct labor hours per Unit    20  30
 Material Moves per Product Line    15  20
 Budgeted Materials Handling Cost  $75,000    
 Total Machine Hours   10,000   16,000
 Machine Maintenance Costs $180,000     

Refer to Ultimate Vision Corporation.If the company uses an activity-based costing (ABC) system to allocate factory overhead,the materials handing cost allocated to projection TVs would be:


A) $35,000
B) $45,000
C) $46,875
D) $51,923

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