The Other Activity Cost Pool Is Used to Accumulate Costs

question 43

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:
-Activity rates from Hample Corporation's activity-based costing system are listed below.The company uses the activity rates to assign overhead costs to products: Last year,Product J27W involved 30 customer orders,152 assembly hours,and 54 batches.How much overhead cost would be assigned to Product J27W using the activity-based costing system?

• A)$24,702.12
• B)$5,419.38
• C)$4,634.28
• D)$104.67

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Definitions:

Matching Law

A principle in behavioral psychology stating that the proportion of responses on a particular schedule matches the proportion of reinforcers obtained on that schedule.

Maximization Theory

The principle that decision-makers aim to make choices that result in the highest possible benefit or utility.

Behavior Allocation

The distribution of behavioral responses across different situations or stimuli, often influenced by variable reinforcement schedules.

1:2 Contingency

A specific reinforcement schedule where one behavior is reinforced every second time it occurs.