Hosley Corporation Uses an Activity-Based Costing System with Three Activity

question 155

Multiple Choice

Hosley Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs: The distribution of resource consumption across the three activity cost pools is given below: How much cost, in total, would be allocated in the first-stage allocation to the Other activity cost pool?

• A) $123,000
• B) $174,000
• C) $58,000
• D) $203,000

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Definitions:

Factor Analysis

A statistical method used to describe variability among observed variables in terms of a potentially lower number of unobserved variables called factors.

General Intelligence

A theorized cognitive ability to learn from experience, adapt to new situations, understand and handle abstract concepts, and use knowledge to manipulate one’s environment.

General Intelligence

A theory suggesting that a single factor underlies various cognitive abilities, enabling individuals to perform a range of mental tasks.

Factor Analysis

A statistical method used to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables.