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

question 71

Multiple Choice

Figurski 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, $38,500; Order Filling, $23,000; and Other, $15,500. 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 Order Filling activity cost pool under activity-based costing is closest to:

• A)$23.00 per order
• B)$77.00 per order
• C)$1.00 per order
• D)$3.33 per order

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Definitions:

Intellectual Disability

A term for significant limitations in both intellectual functioning and in adaptive behavior, which covers many everyday social and practical skills.

Skill Level

The proficiency or competence achieved in a specific activity, task, or field, often measured against established standards or through performance assessment.

Interpersonal Intelligence

The ability to understand and interact effectively with others.

Intrapersonal Intelligence

A component of Howard Gardner's theory of multiple intelligences focusing on the individual's capacity to understand oneself and to use such knowledge effectively in regulating one’s life.