The Chapeau Company is noted for an exceptionally impressive line of one-size fits-all men's hats. Chapeau has established the following selling and distribution support activity-cost pools and their corresponding activity drivers for the year 2018:
Required:
a.Determine the activity-cost-driver rate for each of the four selling and distribution activities.
b.Under what circumstances is it appropriate to use each of the activity-cost drivers?
c.Describe at least one possible negative behavioral consequence for each of the four activity-cost drivers.
Definitions:
Adhesives
Substances applied to one surface or both surfaces of two separate items that binds them together and resists their separation.
Origami
The traditional Japanese art or technique of folding paper into a variety of decorative or representational forms.
Folds
Folds are bends or creases in a material made by doubling it over itself or by compressing.
Effects
Outcomes or results that are caused by some preceding action or cause.
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