Ormond Corporation Uses Activity-Based Costing to Assign Overhead Costs to Products

question 98

Multiple Choice

Ormond Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $6,800; Order Filling, $10,700; and Other, $4,500. 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 appear below:
-The activity rate for the Machining activity cost pool under activity-based costing is closest to:

• A)$0.32 per MH
• B)$1.25 per MH
• C)$1.10 per MH
• D)$0.34 per MH

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Definitions:

Basic Psychological Needs

Fundamental requirements for psychological well-being, often including autonomy, competence, and relatedness.

Process Theories

Theories that focus on understanding how specific processes contribute to the motivation, behavior, and performance of individuals.

Maslow's Need Hierarchy

A theory in psychology that categorizes human needs into a hierarchical structure, from basic physiological needs to self-actualization.

McClelland's Theory

A psychological theory that categorizes human motivation into three types: the need for achievement, the need for affiliation, and the need for power.