A Company Identified the Following Partial List of Activities,costs,and Activity

question 213

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: $0.03 per unit.
• B)Extrusion: $88 per batch; handling: $32 per order; packaging: $0.03 per unit.
• C)Extrusion: $88 per order; handling: $32 per unit; packaging: $0.03 per batch.
• D)Extrusion: $418 per batch; handling: $117.33 per order; packaging: $0.054 per unit.
• E)Extrusion: $118.13 per batch; handling: $44 per order; packaging: $0.0675 per unit.

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Definitions:

Dividends Declared

A portion of a company's earnings that is decided by the board of directors to be distributed to shareholders.

Statement Of Comprehensive Income

A financial statement that displays all changes in equity during a period except those resulting from investments by and distributions to the company’s shareholders.

Other Comprehensive Income

Income that includes all changes in equity from non-owner sources, such as foreign exchange adjustments or unrealized gains/losses on certain investments, not included in net income.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) is represented as a proportion of the total account.