Ballweg Corporation Has an Activity-Based Costing System with Three Activity

question 97

Multiple Choice

Ballweg Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Finally, the costs of Machining and Order Filling are combined with the following sales and direct cost data to determine product margins.
-The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:

• A)$7.00 per order
• B)$31.00 per order
• C)$14.00 per order
• D)$10.30 per order

---

Definitions:

Dissociation

A mental process of disconnecting from one's thoughts, feelings, memories, or sense of identity.

Ernest Hilgard

A psychologist known for his work on hypnosis and the theory of the "hidden observer" which suggests a split in awareness during hypnosis.

Top-down Processing

The cognitive process that involves using context or general knowledge to interpret information.

Anticipate

To expect or predict something to happen in the future based on current knowledge or instincts.