A Company Identified the Following Partial List of Activities, Costs

question 55

Multiple Choice

A company identified the following partial list of activities, costs, and activity drivers expected for the next year: $$\begin{array} { | l | c | l | } \hline \text { Activity } & \text { Expected Costs } & { \text { Cost Driver } } \\\hline \text { Extrusion costs } & \$ 83600 & \text { Nuriber batches made } \\\hline \text { Hardling costs } & \$ 8,800 & \text { Nuriber of arders Filled } \\\hline \text { Packapinp costs } & \$ 40,500 & \text { Nurber of wits made } \\\hline\end{array}$$ $$\begin{array} { | l | c | c | } \hline & \text { Product A } & \text { Product B } \\\hline \text { Production volume } & 750,000 \text { urits } & 600,000 \text { urits } \\\hline \text { Batches made } & 200 \text { batches } & 750 \text { batches } \\\hline \text { Orders Filled } & 75 & 200 \\\hline\end{array}$$ 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.

---

Definitions:

Organic Inferiority

A concept introduced by psychologist Alfred Adler, referring to the perceived or actual physical weaknesses that can lead to feelings of inadequacy and compensatory striving for superiority.

Depressive Complex

A constellation of feelings, thoughts, and behaviors characterized by sadness, low self-esteem, and a lack of interest or pleasure in activities.

Superiority Complex

A psychological defense mechanism in which a person's feelings of superiority mask their true feelings of inferiority or weakness.

The Conscious

The part of the human mind that is aware of thoughts, feelings, and surroundings at any given moment.