Accola Company Uses Activity-Based Costing

question 9

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 specialty windows? (Round off your answer to the nearest whole dollar.)

• A) $9,129
• B) $6,639
• C) $14,296
• D) $15,649

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Definitions:

Inefficient

Not achieving maximum productivity; wasting or failing to make the best use of time or resources.

Analytic Cognitive Style

A style of thinking characterized by a logical, detail-oriented, and systematic approach to problem-solving and decision-making.

Mental Shortcuts

Heuristic techniques used by individuals to simplify decision-making processes, though they may not always lead to accurate judgments.

Step-by-Step Procedures

Detailed, sequential instructions designed to guide someone through the completion of a task or process.