In Activity-Based Costing, the Total Activity in an Activity Cost

question 182

Multiple Choice

In activity-based costing, the total activity in an activity cost pool can be computed by:

• A)dividing the total overhead cost in the activity cost pool by the activity cost pool's activity rate.
• B)multiplying the total overhead cost in the activity cost pool by the activity cost pool's activity rate.
• C)dividing the activity cost pool's activity rate by the direct labor-hours required to make a product.
• D)multiplying the activity cost pool's activity rate by the direct labor-hours required to make a product.

---

Definitions:

Tukey's Multiple Comparison

A statistically rigorous method used to find means that are significantly different from each other after conducting an ANOVA.

Studentized Range

A statistical measure used in analyzing the spread of data points relative to their mean, particularly useful in assessing the significance of differences observed in data sets with different sample sizes.

Critical Value

A threshold in hypothesis testing that separates the region where the null hypothesis is rejected from the region where it is not rejected, often found using statistical tables.

Total SS

A measure in statistical analysis that quantifies the total variance within a dataset, used in various regression models.