Accola Company Uses Activity-Based Costing

question 54

Multiple Choice

Accola Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,100 units and of Product B is 700 units. There are three activity cost pools, with estimated costs and expected activity as follows:



-If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost would be allocated to the wall mirrors? (Round off your answer to the nearest whole dollar.)

• A) $6,086
• B) $9,129
• C) $11,618
• D) $3,961

Grasp the adjustments needed under the indirect method for cash flow statement preparation.

Identify the categories of cash flows in the statement of cash flows.

Understand the concept of cash equivalents.

Recognize transactions affecting cash flows from financing activities.

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