The "Other" Activity Cost Pool Consists of the Costs of Idle

question 81

Multiple Choice

The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of the costs to the activity cost pools.
-How much cost,in total should not be allocated to orders and customer support in the second stage of the allocation process if the activity-based costing system is used for internal decision making?

• A) $0.
• B) $60,000.
• C) $80,000.
• D) $120,000.

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Definitions:

Behaviour

The actions or reactions of an organism, often in response to its environment.

Behaviourism

A psychological approach that emphasizes the study of observable behavior and the role of environmental forces in shaping it, discounting mental states as primary causes of behavior.

Psychoanalytic Theory

A theory of personality organization and the dynamics of personality development that guides psychoanalysis, founded on the premise that unconscious forces such as unresolved conflicts from childhood shape behavior.

Dehumanising

Actions or processes that deprive individuals or groups of their human qualities, personality, or dignity.