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

question 34

Multiple Choice

Lake Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other.In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption.Data used in the first stage allocations follow: Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches.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 Processing and Supervising are combined with the following sales and direct cost data to determine product margins. What is the product margin for Product L2 under activity-based costing?

• A)$32, 764
• B)$69, 300
• C)$17, 344
• D)$56, 200

Identify the reasons for the failure of organizational change programs, emphasizing the importance of proper diagnosis, change management, and cultural adjustments.

Relate the concepts of unfreezing, change, and refreezing in the context of organizational development and change processes.

Delineate the essential components for successful change, including capability, opportunity, motivation, and support.

Appreciate the implications of operating in hyper-turbulent environments and the necessity for organizations to become learning-oriented to maintain effectiveness.

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Definitions:

Ethics

The branch of philosophy that deals with issues of right and wrong in human affairs.

Truth

Conformity to fact or reality; an accurate representation of matters as they are.

Stability

The state of being steadfast and unchanging, commonly referred to in economic, financial, and social contexts to denote consistency and reliability.

Predictability

The ability to foresee and anticipate future events or outcomes based on existing patterns or data.