The greatest advantage associated with activity-based coating (relative to a traditional allocation with a single cost pool) is that: It is easy to design and implement It allocates controllable cost drivers into multiple activity-based pools of practical capacity C. It uses multiple cost pools but only a single cost driver to improve the precision of estimates D. It uses a single cost pool but multiple cost drivers to improve the precision of estimates E. It uses multiple cost pools and multiple cost drivers that accurately capture the consumption of capacity resources by cost objects AB Company makes products A and B. The company uses activity-based costing. Compute allocated capacity costs for product A (assume that practical capacity = actual activity): A. $2, 4000 B. $15,000 C. 19, 400 D. $29, 500 E. Not enough information - need to know the total number of units of product A Use the following information to answer questions 7-8: The following table represents Delta Company's production budget. Delta's inventory policy is to have ending inventory equal to 20% of next month's sales. Compute budgeted production for July: not enough information 520 600 680 800 Compute ending inventory for August: A. not enough information B. 120 C. 150 D. 200 E. 250 XYZ Company collects 75% of a month's sales in the month of sale and 25% of sales in the following month. Compute cash receipts (cash inflows) for June. May sales: $2, 400 June sales: $2, 800 July sales: $2,000 A not enough information, because sales revenue differs from cash inflows B. $700 C. $2, 100 D. $2, 600 E. $2, 700