To Assign Overhead Costs to Each Product, the Company

question 87

Multiple Choice

To assign overhead costs to each product, the company

• A)multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.
• B)multiplies the overhead rate by the number of direct labor hours used on each product.
• C)assigns the cost of each activity cost pool in total to one product line.
• D)multiplies the rate of cost drivers per estimated cost for the cost pool by the estimated cost for each cost pool.

---

Definitions:

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often involved in motivation and performance.

Novel Stimuli

New or unfamiliar stimuli that have not been previously experienced, often triggering curiosity or exploration.

Free Riding

Benefiting from resources, goods, or services without contributing to the cost or effort involved.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically improving on simple tasks and doing worse on complex tasks.