Anola Company Has Two Products: a AndB The Activity Rate Under the Activity-Based Costing System for Activity

question 28

Multiple Choice

Anola Company has two products: A andB. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: $\begin{array}{lrr}&\text { Estimated}& \text {Expected Activity }\\\text { Activity CostPool }&\text { Cost }& \text {ProductA}&\text { Product B}&\text { Total }\\ \text {Activity 1 } &£ 18,000&300 &200 &500\\\\ \text { Activity 2. } &£ 16,000& 500 & 100 &600\\\\ \text { Activity 3 } &£ 27,000& 600 &300 & 900\\\end{array}$

The activity rate under the activity-based costing system for Activity 3 is closest to

• A)£30.00.
• B)£30.50.
• C)£90.00.
• D)£67.78.

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Definitions:

Align Worker Interests

The process or strategy of ensuring that the objectives and concerns of workers align with those of their representatives, such as unions or labor organizations.

Employer

An individual or organization that hires and pays people to work for them, providing salary or wages in exchange for the employee's labor.

Human Resource Management

The strategic approach to the effective management of people in an organization, which helps businesses gain a competitive advantage. It's designed to maximize employee performance in service of the employer's strategic objectives.

Critical Industrial Relations

The study and practice of managing and improving relationships between employers and employees, particularly in contexts where conflicts or disputes might arise.