Davis Gradebook ORION Multiple Choice Question 104 Gooding Company manufactures

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Davis Gradebook ORION Multiple Choice Question 104 Gooding Company manufactures two labor hours. The models of its skillet, the Kitchen and the Campfire. The Kitchen model requires 10,000 direct labor hours and the Campfire requires 30,000 dire produces 3,400 units of the Kitchen model and 600 units of the Campfire model each year. The company inspects one Kitchen for every 100 produced, and inspects one Campfire for every 10 produced. The company expects to incur $84,600 of total inspecting costs this year. How much of the inspecting costs should be allocated to the Kitchen model using ABC costing? o $21,150 $30,600 $42,300 TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Question Attempts: 0 of 2 used SAVE FOR LATER SUBMIT % Earn Maximum Points available only if you answer this question correctly in your first

Explanation / Answer

C. $30,600

Total number of Inspections:

Kitchen = 3,400 units ÷ 100 = 34 inspections

Campfire = 600 units ÷ 10 = 60 inspections

Total inspections = 34 + 60 = 94

Inspecting costs to be allocated to the Kitchen model using ABC costing = $84,600 x (34 ÷ 94) = $30,600

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