In Activity-Based Costing, the Activity Rate for an Activity Cost

question 210

Multiple Choice

In activity-based costing, the activity rate for an activity cost pool is computed by dividing the total overhead cost in the activity cost pool by:

• A) the direct labor-hours required by the product.
• B) the machine-hours required by the product.
• C) the total activity for the activity cost pool.
• D) the total direct labor-hours for the activity cost pool.

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Definitions:

Intrinsic Rewards

Satisfaction or enjoyment derived from engaging in an activity itself, rather than from external benefits or reinforcements.

Extrinsic Rewards

Benefits or incentives provided by external factors, such as money, grades, or praise, which motivate individuals to perform certain actions.

Negative Mood

A state of feeling bad emotionally, such as being angry, sad, anxious, or irritable.

Rational Model

A decision-making model that assumes individuals will make choices that maximize benefits and minimize any costs.