Reference: 17_06
Assume That the Oregon Ice Cream Company Is

question 44

Multiple Choice

Reference: 17_06
Assume that the Oregon Ice Cream Company is considering the costs of two of their product lines-ice cream sandwiches and dessert bars. The company identified the following partial list of activities, costs, and activity drivers expected for the next year.
$$\begin{array} { | l | c | c | } \hline \text { Activity } & \text { Expected Costs } & \text { Cost Driver } \\\hline \text { Extrusion costs } & \$ 637,500 & \text { Number batches made } \\\hline \text { Packaging costs } & \$ 44,000 & \text { Number of units made } \\\hline\end{array}$$ $$\begin{array} { | l | c | c | } \hline & \text { Ice Crearn Sandwiches } & \text { Dessert Bars } \\\hline \text { Production volume } & 350,000 \text { urits } & 2 0 0 , 0 0 0 \text { urits } \\\hline \text { Batches made } & 400 \text { batches } & 350 \text { batches } \\\hline\end{array}$$
-Refer to the data above.How much overhead cost will be assigned to the dessert bar product line using activity-based costing (ABC) ?

• A) 340,750
• B) $247,818
• C) $16,000
• D) $297,500
• E) $313,500

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Definitions:

Self-Actualization

The accomplishment or actualization of individual capabilities and possibilities, viewed as a fundamental motivation or requirement in each person.

Maslow's Needs Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by five levels of needs: physiological, safety, love/belonging, esteem, and self-actualization.

Physiological And Safety

Referring to the basic needs outlined in Maslow's hierarchy, including physical well-being and security from physical danger.

Herzberg

Refers to Frederick Herzberg, a psychologist known for his theory on job satisfaction and motivation, distinguishing between hygiene factors and motivators.