Answer the Following Questions Using the Information Below:
Katoomba Company

question 115

Multiple Choice

Answer the following questions using the information below:
Katoomba Company provides the following ABC costing information:
$$\begin{array}{l}\begin{array} { l c l } \text { Activities } & \text { Total Costs } & \text { Activity-cost Drivers } \\\text { Account inquiry hours } & \$ 800000 & 20000 \text { hours } \\\text { Account billing lines } & \$ 560000 & 8000 \text { 000 lines } \\\text { Account verification accounts } & \$ 300000 & 80000 \text { accounts } \\\text { Correspondence letters } & \$ 100000 & 8000 \text { letters } \\\quad \text { Total costs } & \$ 1760000 &\end{array}\\\\\text { The above activities are uæed by Departments } \mathrm { A } \text { and } \mathrm { B } \text { as follows: }\\\\\begin{array} { l l l } & \text { Department A } & \text { Department B } \\\text { Account inquiry hours } & 2000 \text { hours } & 8000 \text { hours } \\\text { Account billing lines } & 400 \text { o00 lines } & 200000 \text { lines } \\\text { Account verification accounts } & 20000 \text { accounts } & 8000 \text { accounts } \\\text { Correspondence letters } & 1000 \text { letters } & 1600 \text { letters }\end{array}\end{array}$$
-How much of the total costs will be assigned to Department B?

• A)$80 000
• B)$158 000
• C)$228 000
• D)$880 000

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Definitions:

Overjustification Effect

A phenomenon where providing excessive external rewards for an already internally rewarding activity reduces a person's intrinsic motivation.

Example

A representative case or model that illustrates a general rule or serves as a typical instance of a particular phenomenon.

Self-Presentation

The process through which individuals attempt to control the impressions others form of them, often by manipulating their own appearance or information they share.

Risky Behavior

Actions that expose individuals to danger or harm, often with a potential for negative outcomes.