Answer the Following Questions Using the Information Below:
Ghan Collectibles

question 200

Multiple Choice

Answer the following questions using the information below:
Ghan Collectibles produces T-shirts and sweatshirts.Product profitability is analysed as follows:
$\begin{array} { l r r } & \text { T-SHIRTS } & \text { SWEATSHIRTS } \\ \text { Production and sales volume } & 60000 \text { units } & 35000 \text { urits } \\ \text { Selling price } & \$ 16.00 & \$ 29.00 \\ \text { Direct material } & \$ 2.00 & \$ 5.00 \\ \text { Direct labour } & \$ 4.50 & \$ 7.20 \\ \text { Manufacturing overhead } & \$ 2.00 & \$ 3.00 \\ \text { Gross profit } & \$ 7.50 & \$ 13.80 \\ \text { Selling and administrative } & \$ 4.00 & \$ 7.00 \\ \text { Operating profit } & \$ 3.50 & \$ 6.80 \end{array}$

Ghan Collectibles's managers have decided to revise their current assignment of overhead costs to reflect the following $\mathrm { ABC }$ cost information:

$\begin{array}{c}\text { Activities demanded }\\\begin{array}{rr}\text { T-SHIRTS } & \text { SWEATSHIRTS } \\0.75 \mathrm{DLH} / \text { unit } & 1.2 \mathrm{DLH} / \mathrm{unit} \\45000 \mathrm{DLHs} & 42000 \mathrm{DLHs} \\60000 \text { inspections } & 17500 \text { inspections }\end{array}\end{array}$
-Under the revised ABC system,the activity-cost driver rate for the supervision activity is:

• A)$2.24
• B)$2.40
• C)$2.58
• D)$1.16

---

Definitions:

Peak Experiences

Highly positive and transcendent moments in life where an individual feels a sense of euphoria, deep fulfillment, or profound meaning, often leading to a shift in perception or values.

Ecstasy

A state of intense joy and delight, often used to describe a heightened emotional or spiritual experience.

Transcendence

The act of going beyond the limits of ordinary experience, often in a spiritual or existential sense.

Metamotives

Metamotives refer to higher-order motivations that transcend basic physiological needs, often related to self-actualization and the pursuit of meaning.