Addy Company Has Two Products: a and B

question 89

Multiple Choice

Addy Company has two products: A and B. The annual production and sales of Product A is 1,700 units and of Product B is 1,100 units. The company has traditionally used direct labour hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labour hours per unit, and Product B requires 0.6 direct labour hours per unit. The total estimated overhead for next period is $98,785.

The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three factory overhead activity cost pools—Activity 1, Activity 2, and General Factory—with estimated overhead costs and expected activity as follows:

(Note: The General Factory activity cost pool's costs are allocated on the basis of direct labour hours.)
-(Appendix 5B) The predetermined overhead rate (i.e.,activity rate) for Activity 2 under the activity-based costing system is closest to which of the following?

• A) $9.15.
• B) $10.23.
• C) $51.99.
• D) $86.93.

Grasp the legal regulations related to employee benefits and leave policies.

Identify strategies that supervisors can use to motivate employees effectively according to different motivational theories.

Understand different types of compensation and incentive plans including profit-sharing, gainsharing, and piecework systems.

Recognize the approaches organizations take to maintain salary confidentiality while motivating employees.

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Definitions:

Pessimistic Life Story

A narrative perspective that focuses on negative experiences and expectations, often anticipating the worst possible outcomes.

Exposure Therapy

A psychological treatment that involves confronting fears directly by gradual and repeated exposure to the feared object, situation, or activity.

Agoraphobia

A set of phobias, often set off by a panic attack, involving the basic fear of being away from a safe place or person.

Cognitive-behavior Therapy

A psychotherapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.