20. Selecta Corp manufactures ice creams; magnum and cornetto. The following are the information for two products. Setups Inspections Assembly Magnum- 10,000 units Cornetto- 40,000 units 6 3 2 Activity Pool Setups Inspections Assembly (DLH) Activity Base 400,000 Budgeted Amount 1,000,000 600,000 2,600,000 200,000 500,000 The total factory overhead to be changed to each unit of Magnum: a. 38.80 b. 34.40 c. 48.80 d. 32.80

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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20. Selecta Corp manufactures ice creams; magnum and cornetto. The following are the information for
two products.
Setups
Inspections
Assembly
Magnum- 10,000 units
Cornetto- 40,000 units
Activity Pool
Setups
Inspections
Assembly (DLH)
6
3
2
6
4
Activity Base
400,000
200,000
500,000
Budgeted Amount
1,000,000
600,000
2,600,000
The total factory overhead to be changed to each unit of Magnum:
а. 38.80
c. 48.80
b. 34.40
d. 32.80
Transcribed Image Text:20. Selecta Corp manufactures ice creams; magnum and cornetto. The following are the information for two products. Setups Inspections Assembly Magnum- 10,000 units Cornetto- 40,000 units Activity Pool Setups Inspections Assembly (DLH) 6 3 2 6 4 Activity Base 400,000 200,000 500,000 Budgeted Amount 1,000,000 600,000 2,600,000 The total factory overhead to be changed to each unit of Magnum: а. 38.80 c. 48.80 b. 34.40 d. 32.80
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