A Company Identified the Following Partial List of Activities, Costs

question 192

Multiple Choice

A company identified the following partial list of activities, costs, and activity drivers expected for the next year: Calculate activity rates for each of the three activities using activity-based costing (ABC) .

• A) Extrusion: $304 per batch; handling: $32 per unit; packaging: $.03 per unit.
• B) Extrusion: $88 per batch; handling: $32 per order; packaging: $.03 per unit.
• C) Extrusion: $88 per order; handling: $32 per unit; packaging: $.03 per batch.
• D) Extrusion: $418 per batch; handling: $117.33 per order; packaging: $.054 per unit.
• E) Extrusion: $118.13 per batch; handling: $44 per order; packaging: $.0675 per unit.

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Definitions:

Percentage

A portion of 100 that expresses a part of a whole, commonly used in comparing quantities.

Chi-square Statistic

A measure used in statistics to assess the goodness-of-fit between observed frequencies and expected frequencies based on a theoretical distribution.

Obtained Value

The actual value or result achieved from a statistical test or experiment.

Amortized

The process of paying off a debt through regular payments that cover both principal and interest.