Question: Witness 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:
| Product |
Machine Hours |
Setups |
Receiving Orders |
Packing Orders |
| 35mm |
12,000 |
200 |
300 |
500 |
| Digital |
12,000 |
450 |
1,200 |
2,500 |
| Costs |
$70,000 |
$50,000 |
$10,000 |
$30,000 |
Using an activity rate for receiving based on receiving orders, assign receiving costs to the 35mm cameras.
a.$1,802
b.$1,605
c.$4,007
d.$1,209
e.$2,001