Accola Company Uses Activity-Based Costing

question 36

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 material moves, how much of the total materials handling cost would be allocated to the modular homes? (Round off your answer to the nearest whole dollar.)

• A) $182,325
• B) $170,170
• C) $93,552
• D) $109,395

Identify agreements that are considered illegal due to various reasons, including public policy violations.

Distinguish between contracts that are void, unenforceable, or voidable due to illegality.

Recognize the public policy basis for competition restrictions in contractual agreements.

Understand the enforceability and legal considerations around noncompetition clauses.

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Definitions:

M1

A category of the money supply that includes all physical money like coins and currency, as well as demand deposits and other liquid assets held by the central bank.

Double Coincidence of Wants

A condition in barter economies where two parties each hold an item the other wants, making it possible for an exchange to occur without a common medium of exchange.

Barter Situation

A trade system where goods or services are exchanged directly for other goods or services without the use of money as a medium of exchange.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type.