Tracy is thinking of marketing a new energy drink. her key selling proposition will be that her product tastes just as good at room temperature as it does when it is ice cold. she plans on testing whether or not students will like her new energy drink by showing pictures of her drink and the other leading brands to students outside the student union. if the majority of students prefer the picture of her product, she will go ahead with the product launch. tracy may have a problem with the of her measurement in this market research project.

Nichols inc. manufactures remote controls. currently the company uses a plantminuswide rate for allocating manufacturing overhead. the plant manager is considering switchingminusover to abc costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows: activities cost driver allocation rate material handling number of parts $5 per part assembly labor hours $20 per hour inspection time at inspection station $10 per minute the current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $20 per labor hour. what are the indirect manufacturing costs per remote control assuming an method is used and a batch of 10 remote controls are produced? the batch requires 100 parts, 5 direct manufacturing labor hours, and 3 minutes of inspection time.