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

question 280

Multiple Choice

Goertz Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, 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:
Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:Activity:
Finally, the costs of Machining and Order Filling are combined with the following sales and direct cost data to determine product margins.Sales and Direct Cost Data:
The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:

• A) $3.33 per order
• B) $3.00 per order
• C) $54.00 per order
• D) $6.00 per order

Know the fundamentals of SQL (Structured Query Language).

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Definitions:

Median

The middle value of a data set when it is ordered from smallest to largest, or the average of the two middle values when the dataset has an even number of observations.

Outliers

Observations in a dataset that fall far outside the range of values of other observations, potentially skewing the results or analysis.

Central Tendency

A statistical measure that identifies a single value as representative of a data set, commonly the mean, median, or mode.

Statistic

A single measure, reported as a number, used to summarize a sample of data.