Angel Corporation Uses Activity-Based Costing to Determine Product Costs for External

question 43

Multiple Choice

Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
$\begin{array}{ll} & \text { Estimated } \\ \text { Activity Cost Pools (and Activit Measures } &\text {overheadCost}\\\\ \text { Machine related (machine-hours) } & £ 81,600\\ \text { Batch setup (setups) . } &£ 387,000\\ \text { General factory (direct labour-hours) . } &£ 274,800 \\\end{array}$

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $\quad$$\text { Expected Activity }$
$\begin{array}{lrr}\text { Activity Cost Pools }& \text { Total } & \text {Product X}& \text { Product Y}\\ \text { Machine related. } &8,000&3,000&5,000\\ \text { Batch setup. } &10,000&2,000&8,000\\ \text { General factory. } &12,000&7,000&5,000\\\end{array}$

The activity rate for the batch setup activity cost pool is closest to:

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Definitions:

Shaping Process

A method of teaching new behaviors by rewarding closer and closer approximations of the desired behavior.

Behavior Modification

A therapeutic approach aiming to change undesirable behaviors through the systematic application of the principles of learning.

Operant Conditioning

A learning process where the consequences of an action affect the likelihood of the action being repeated, involving rewards and punishments.

Social Learning

Observational learning that occurs when someone watches others get rewarded or punished for behavior.