Reference 05-16
Washie Manufactures Two Types of Products for Washing

question 56

Multiple Choice

Reference 05-16
Washie manufactures two types of products for washing vehicles: the washing mitt, and the polishing cloth. Up to this point, Washie has been utilizing traditional costing with one plant-wide overhead rate using machine hours as the allocation base. The company has been receiving complaints that the polishing mitt seems over-priced. Management is wondering if there's merit to this claim since the washing mitt is a more complex product
compared to the polishing cloth. As such, management has gathered information on the potential activity areas to be used. $\begin{array}{|l|l|l|}\hline \text { Activity } & \text { Activity Measure } & \begin{array}{l}\text { Estimated } \\\text { Manufacturing } \\\text { Overhead Cost }\end{array} \\\hline \text { Design } & \text { Design hours } & \$ 12,000 \\\hline \text { Setups } & \text { Number of set-ups } & 40,000 \\\hline \text { Materials Handling } & \text { Meters of fabric } & 30,000 \\\hline \text { Production } & \text { Machine Hours } & 250,000 \\\hline\end{array}$
The company expected has determined the expected activity for each of the product lines:
During the year, the company sold 100,000 washing mitts and 50,000 polishing cloths. Direct costs are $\$ 8.00$ for washing mitts and $\$ 2.00$ for polishing costs.
$\begin{array}{|l|l|l|}\hline \text { Activity Measure } & \text { Washing Mitt } & \text { Polishing Cloth } \\\hline \# \text { of design hours } & 50 & 5 \\\hline \# \text { of setups } & 30 & 20 \\\hline \# \text { of meters of fabric } & 4,000 & 1,000 \\\hline \# \text { of machine hours } & 40,000 & 10,000 \\\hline\end{array}$
-Compute the predetermined overhead rate using machine hours as the basis for allocating overhead costs to products.

• A)$8.30
• B)$6.64
• C)$33.20
• D)$5.00

Analyze the role of acceptance and non-judgment in building effective client relationships.

Differentiate between professional empathy and overidentification.

Appreciate the importance of finding common ground and building rapport with clients.

Understand the balance of cognitive and affective components in intern engagement.

---

Definitions:

Contradictions

Statements or propositions that are in opposition to one another, implying that if one is true, the other must be false.

Case Histories

Detailed descriptions of an individual or group, especially regarding psychological or medical history and treatment, used for study or analysis.

Sexual Seduction

A theory largely related to early psychoanalytic beliefs suggesting that psychological disorders can stem from early sexual abuse or seduction.

Psychoanalysis

A therapeutic approach that explores unconscious thoughts and feelings, developed by Sigmund Freud.