Abraham Company Uses Activity-Based Costing

question 45

Multiple Choice

Abraham Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 1,000 units. There are three activity cost pools, with total costs and activity as follows:
-The activity rate for Activity 2 is closest to:

• A)$22.04
• B)$117.55
• C)$37.97
• D)$18.56

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Definitions:

Population Slope

In statistics, the true slope of the regression line that represents the relationship between variables for the entire population.

Television Game Shows

Competitive programs on television where participants play games to win prizes.

Significance Level

The likelihood of incorrectly dismissing the null hypothesis in a statistical assessment, acting as a benchmark for judging the statistical significance of an outcome.

Standard Error of Estimate

A measure used in statistics to indicate the accuracy of predictions made with a regression line, representing the average distance that the observed values fall from the regression line.