Adirondak Marketing Inc

question 82

Multiple Choice

Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. Calculate the overhead rate per unit for Product A in painting department:

• A) $236.32 per unit
• B) $325.00 per unit
• C) $147.70 per unit
• D) $161.00 per unit

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Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, politics, or being consistent with the accepted standards in a society.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes.

Informational Social Influence

The influence to conform with a group's behavior based on the belief that the group is competent and has the correct information.

Normative Social Influence

A type of social influence that leads individuals to conform in order to be liked and accepted by the group.