Laningham Corporation Uses an Activity Based Costing System to Assign

question 1

Multiple Choice

Laningham Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs-equipment depreciation and supervisory expense-are allocated to three activity cost pools-Machining, Order Filling, and Other-based on resource consumption. Data to perform these allocations appear below: In the second stage, 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:
-The activity rate for the Machining activity cost pool under activity-based costing is closest to:

• A)$3.81 per MH
• B)$10.50 per MH
• C)$3.60 per MH
• D)$6.70 per MH

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Definitions:

Nature Versus Nurture

The ongoing debate regarding the relative contributions of genetic inheritance and environmental factors to human development.

Aggressive

Exhibiting forceful behavior or attitudes with the intention to dominate or harm others.

Longitudinal

A research design in which the same subjects are observed for an extended period to detect any changes that may occur over time.

Cross-Sequential Design

is a research method that combines both longitudinal and cross-sectional designs to study changes over time in different cohorts.