Assume That the Oregon Ice Cream Company Is Considering the Costs

question 134

Multiple Choice

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.
$$\begin{array}{l}\begin{array} { | l | c | c | } \hline \text { Activity } & \text { Expected Costs } & \text { Cost Driver } \\\hline \text { Extrusion Costs } & \$ 637,500 & \text { Number batches made } \\\hline \text { Packaging Costs } & \$ 44,000 & \text { Number of units made } \\\hline\end{array}\\\\\begin{array} { | l | c | c | } \hline & \text { Ice Cream Sandwiches } & \text { Dessert Bars } \\\hline \text { Production volume } & 350,000 \text { units } & 200,000 \text { units } \\\hline \text { Batches made } & 400 \text { batches } & 350 \text { batches } \\\hline\end{array}\end{array}$$
-Refer to the data above. How much overhead cost will be assigned to the ice cream sandwich product line using activity-based costing (ABC) ?

• A) 340,000
• B) $368,000
• C) $28,000
• D) $850.08
• E) $433,682

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Definitions:

Non-Self-Actualizers

Individuals who have not realized their full potential or reached the highest level of Maslow's hierarchy of needs, often due to unmet lower-level needs.

Procrastination

The action of delaying or postponing tasks, decisions, or actions, often due to avoidance of stress or discomfort associated with the task.

Self-Actualization

Fulfilling or actualizing one's potential and talents, viewed as a compelling urge or essential need within each person.

Deficiency Needs

Basic human requirements that must be met for an individual to grow psychologically, as identified by Abraham Maslow, including physiological, safety, love, and esteem needs.