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

question 63

Multiple Choice

A company identified the following partial list of activities,costs,and activity drivers expected for the next year:
$$\begin{array} { | l | c | l | } \hline \text { Activity } & \text { Expected Costs } & { \text { Cost Driver } } \\\hline \text { Extrusion costs } & \$ 83600 & \text { Number batches made } \\\hline \text { Handling costs } & \$ 8,800 & \text { Number of orders Filled } \\\hline \text { Packaging costs } & \$ 40,500 & \text { Number of units made } \\\hline\end{array}$$
$$\begin{array} { | l | c | c | } \hline & \text { Product A } & \text { Product B } \\\hline \text { Production volume } & 750,000 \text { units } & 600,000 \text { units } \\\hline \text { Batches rmade } & 200 \text { batches } & 750 \text { batches } \\\hline \text { Orders Filled } & 75 & 200 \\\hline\end{array}$$
Calculate activity rates for each of the three activities using activity-based costing (ABC) .

• A) Extrusion: $304 per batch; handling: $32 per unit; packaging: $.03 per unit.
• B) Extrusion: $88 per batch; handling: $32 per order; packaging: $.03 per unit.
• C) Extrusion: $88 per order; handling: $32 per unit; packaging: $.03 per batch.
• D) Extrusion: $418 per batch; handling: $117.33 per order; packaging: $.054 per unit.
• E) Extrusion: $118.13 per batch; handling: $44 per order; packaging: $.0675 per unit.

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Definitions:

Feedback Mechanism

A regulatory process in biological systems where the output or result influences the activity of the process itself, often maintaining homeostasis.

Negative

Often referring to a lack or absence of a specified substance, condition, or entity in various contexts, such as test results.

Blood pH

The measure of the acidity or alkalinity of blood, crucial for maintaining essential physiological processes.

Respiratory System

The body system consisting of organs and structures responsible for gas exchange, allowing for inhalation of oxygen and exhalation of carbon dioxide.