The Troubadours Company is noted for an exceptionally impressive line of Mardi Gras masks.Troubadours has established the following selling and distribution overhead activity cost pools and their corresponding activity drivers for the year 2011:

a. Determine the activity cost driver rate for each of the four selling and distribution activities.
b. Under what circumstances would it be appropriate to use each of the activity cost drivers to
determine the cost of the Mardi Gras masks?
c. Describe at least one possible negative behavioral consequence for each of the four activity cost drivers.

Question

The Troubadours Company is noted for an exceptionally impressive line of Mardi Gras masks.Troubadours has established the following selling and distribution overhead activity cost pools and their corresponding activity drivers for the year 2011:

a. Determine the activity cost driver rate for each of the four selling and distribution activities.
b. Under what circumstances would it be appropriate to use each of the activity cost drivers to
determine the cost of the Mardi Gras masks?
c. Describe at least one possible negative behavioral consequence for each of the four activity cost drivers.

Quizplus · Accepted Answer

The Answer of The Troubadours Company is noted for an exceptionally impressive line of Mardi Gras masks.Troubadours has established the following selling and distribution overhead activity cost pools and their corresponding activity drivers for the year 2011:

a. Determine the activity cost driver rate for each of the four selling and distribution activities.
b. Under what circumstances would it be appropriate to use each of the activity cost drivers to
determine the cost of the Mardi Gras masks?
c. Describe at least one possible negative behavioral consequence for each of the four activity cost drivers.

The Troubadours Company Is Noted for an Exceptionally Impressive Line