Deemer Corporation Has an Activity-Based Costing System with Three Activity

question 66

Multiple Choice

Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Distribution of Resource Consumption Across Activity Cost Pools:
Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:Activity:
The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

• A) $15.00 per batch
• B) $79.00 per batch
• C) $15.80 per batch
• D) $6.00 per batch

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Definitions:

Interference Theory

The view that we may forget stored material because other learning interferes with it.

Serial-position Effect

A cognitive phenomenon where people tend to remember the first and last items in a series best, and the middle items worst.

Retrospective Memory

Memory for past events, activities, and learning experiences, as shown by explicit (episodic and semantic) and implicit memories.

Repetition

The act of doing or saying something over and over again to retain or improve the skill or memory.