Reference: 05-06
Accola Company Uses Activity-Based Costing -The Activity Rate for Activity 3 Is Closest To?
A)$26

question 77

Multiple Choice

Reference: 05-06
Accola Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A are 1,100 units and of Product B are 700 units. There are three activity cost pools, with estimated costs and expected activity as follows: $$\begin{array} { | l | l | l | l | l | } \hline \text { Activity } & & \text { Expected Activity } \\\hline \text { Cost Pool } & \text { Estimated Cost } & \text { Product A } & \text { Product B } & \text { Total } \\\hline \text { Activity 1 } & \$ 18,271 & 600 & 500 & 1,100 \\\hline \text { Activity 2 } & \$ 35,891 & 1,600 & 300 & 1,900 \\\hline \text { Activity } 3 & \$ 48,796 & 440 & 420 & 860 \\\hline\end{array}$$
-The activity rate for Activity 3 is closest to?

• A)$26.67.
• B)$119.72.
• C)$116.18.
• D)$56.74.

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Definitions:

Hair Cells

Sensory cells located in the inner ear that are critical for hearing and balance, converting mechanical sound waves into neural signals.

Slowly Adapting Receptors

Sensory receptors in the body that respond to a stimulus over an extended period, gradually decreasing in activity.

Meissner's Corpuscles

Specialized nerve endings in the skin that are sensitive to light touch, enabling the perception of texture, shape, and fine details.

Merkel's Receptors

Specialized nerve endings in the skin that respond to light touch and pressure, helping in the perception of texture and shape.