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

question 242

Multiple Choice

Wedd 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, $51,000; Supervising, $31,600; and Other, $20,300. 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 Processing activity cost pool under activity-based costing is closest to:

• A) $2.82 per MH
• B) $3.44 per MH
• C) $3.14 per MH
• D) $7.57 per MH

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Definitions:

Narrative Therapy

A form of psychotherapy that centers on the client's narrative or story as a means to examine and resolve problematic situations.

Narrative Empathy

The capacity to understand and share the feelings of another person through engagement with narratives or stories.

Constructivist Therapies

Psychological treatments grounded in the belief that individuals construct their own understanding of the world, and therapists help clients identify and adjust these constructions.

Evidence-based Practices

Methods or interventions that have been scientifically tested and proven to be effective.