Sorice Corporation Uses Activity-Based Costing to Assign Overhead Costs to Products

question 172

Multiple Choice

Sorice Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $20,200; Supervising, $11,000; and Other, $66,800. 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 appear below: The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

• A) $7.50 per batch
• B) $6.00 per batch
• C) $11.00 per batch
• D) $98.00 per batch

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Definitions:

Job Content

The actual tasks, responsibilities, and activities that constitute one's employment, defining their role and expectations within an organization.

Job Satisfaction

The level of contentment employees feel about their work, which can affect their performance and motivation.

ERG Theory

ERG Theory is a motivational theory developed by Clayton P. Alderfer that categorizes human needs into three basic levels: Existence, Relatedness, and Growth, suggesting that these needs can be pursued simultaneously.

Alderfer

A psychologist known for developing the ERG (Existence, Relatedness, and Growth) theory as an extension of Maslow's hierarchy of needs.