Hettich Corporation Uses an Activity-Based Costing System with the Following

question 4

Multiple Choice

Hettich Corporation uses an activity-based costing system with the following three activity cost pools: The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: The distribution of resource consumption across activity cost pools is given below: The activity rate for the Order Processing activity cost pool is closest to:

• A)$1, 400 per order
• B)$1, 600 per order
• C)$1, 150 per order
• D)$800 per order

---

Definitions:

Evaluation Apprehension

The fear of being judged by others, which can affect performance and behavior in social and evaluation situations.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically improving performance on simple or well-rehearsed tasks and hindering it on complex tasks.

Drive Theory

A theory in psychology that explains motivation as being driven by the desire to reduce internal tensions caused by unmet needs.

Social Facilitation

The tendency for individuals to perform better on tasks when in the presence of others than when alone.