Lindsey Company Uses Activity-Based Costing The Cost Per Unit of Product a Under Activity-Based Costing

question 23

Multiple Choice

Lindsey Company uses activity-based costing. The company has two products: A andB. The annual production and sales of Product A is 5,000 units and of Product B is 2,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: $\begin{array}{lrr}&\text { Estimated}&& \text { Expected Activity }\\\text { Activity Cost Pool }&\text { cost }&\text { ProductA}&\text { Product B}&\text { Total }\\ \text {Activity 1. } &£ 24,000& 200 &800 &1,000\\ \text { Activity 2. } &£36,900 & 750 & 150 &900\\ \text { Activity 3.} &£ 63,000 &1,000 &800&1,800\\\end{array}$


The cost per unit of Product A under activity-based costing is closest to

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Definitions:

Operant Conditioning

A simple form of learning in which an organism learns to engage in behavior because it is reinforced.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Social Cognitive Theory

A theory that emphasizes the importance of observational learning, imitation, and modeling in behavior.

Trait Theory

A psychological perspective that attempts to describe personality based on the presence and intensity of various traits, or consistent patterns of thought, emotion, and behavior.