Teecorp Company Provides the Following ABC Costing Information The Above Activities Used by Their Three Departments Are

question 32

Multiple Choice

Teecorp Company provides the following ABC costing information:
$$\begin{array} { l c c } \text { Activities } & \text { Total Costs } & \text { Activity-cost drivers } \\\text { Labor } & \$ 320,000 & 8,000 \text { hours } \\\text { Gas } & \$ 36,000 & 6,000 \text { gallons } \\\text { Invoices } & \$ 40,000 & 2,500 \text { invoices } \\\quad \text { Total costs } & \$ 396,000 &\end{array}$$ The above activities used by their three departments are:
$$\begin{array} { c c c } &\text { Lawn Department } & \text { Bush Department } & \text { Plowing Department } \\\text { Labor } & 2,500 \text { hours } & 1,200 \text { hours } & 4,300 \text { hours } \\\text { Gas } & 1,700 \text { gallons } & 800 \text { gallons } & 3,500 \text { gallons } \\\text { Invoices } & 1,600 \text { invoices } & 400 \text { invoices } & 500 \text { invoices }\end{array}$$
-How much of invoice cost will be assigned to the Bush Department?

• A) $6,400
• B) $8,000
• C) $25,600
• D) $40,000

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Definitions:

Farsighted

The condition of being able to see distant objects more clearly than objects that are near.

Habituation

The process of becoming accustomed to a stimulus after repeated exposure, leading to a decrease in the response to that stimulus over time.

Dishabituation

The renewal of attention or response to a novel stimulus after habituation has occurred to a previous stimulus.

Sensation

The method through which our sensory organs and nervous system capture and interpret energy from stimuli in our surroundings.