The Other Activity Cost Pool Is Used to Accumulate Costs

question 42

Multiple Choice

The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs.
The company has provided the following data concerning its costs: The distribution of resource consumption across activity cost pools is given below: The activity rate for the Order Processing activity cost pool is closest to:
A.$1,050 per order
B.$1,680 per order
C.$1,190 per order
<underLine>D.</underLine> $1,350 per order
Total Order Processing Cost:
-Viren Corporation has provided the following data from its activity-based costing system: The company makes 240 units of product T91H a year,requiring a total of 550 machine-hours,90 orders,and 40 inspection-hours per year.The product's direct materials cost is $16.98 per unit and its direct labor cost is $12.09 per unit.According to the activity-based costing system,the average cost of product T91H is closest to:

• A)$79.66 per unit
• B)$90.81 per unit
• C)$29.07 per unit
• D)$75.70 per unit

Understand the characteristics and differences between organic and mechanistic organizations.

Recognize the formal organizational elements such as bureaucracy, division of labor, and organizational design practices.

Identify and understand the various types of organization designs, including functional, product, and decentralized designs.

Understand the role and impact of decision-making processes within different organizational structures.

---

Definitions:

Standardized Engine

An engine design that is made uniform across different models and manufacturers, enhancing compatibility and efficiency.

Automobile Producer

A company involved in the design, manufacturing, and sale of cars, trucks, and other vehicles.

Federal Deposit Insurance Corporation (FDIC)

A U.S. government agency that insures deposits in banks and thrift institutions for up to $250,000 per depositor, per insured bank, for each account ownership category.

Securities Exchange Commission

A U.S. federal agency that oversees the securities markets and protects investors by maintaining fair, orderly, and efficient markets.