Activity-based costing (ABC) can reduce cost distortions becauHighland Company uses activity based costing. There are three activities required for each order: order taking, order filling, and shipping. Order taking clerks are paid $900 per week and work 36 hours per week. Order filling clerks are paid $1,050 per week and work 35 hours per week. Shipping clerks are paid $950 per week and work 40 hours per week. A recent order required 0.5 hours of order taking time, 1 hour of order filling time, and 0.8 hours of shipping time. The selling price of the materials in the order was $90. Which of the following is the closest to the margin on this order?se ABC: Activity-based costing (ABC) can reduce cost distortions because ABC: employs capacity-related cost drivers. develops cost drivers that link the activities performed to the products manufactured. recognizes interactions between different departments in assigning overhead costs. establishes multiple cost pools