This achievement is accumulative across all levels. Any of the 4 blocks count towards this achievement (Basic/Regular, Heavy/Metal, Power/Electric, and Magnetic). The achievement will unlock instantly mid level upon crushing of the 500th Cube. The achievement can be unlocked even in the post credits bonus level. Since you have to crush blocks anyways for progression of the game it makes sense to save this until the last part of the bonus level.
There are crushers for Power Cubes & Magnet Cubes in the bonus level. So simply grind out the Regular Cubes and Heavy Cubes when you come across one of those, then play the game regularly and then grind out the Power Cubes & 500 Cubes on the bonus level. That way you're not wasting any time crushing excess cubes with the added bonus of no enemies in the level.
Also jumping up in the air once you have 3 blocks will save a few seconds versus throwing each block to get rid of it and make room for 3 more blocks. So basically you crush, crush, crush, jump, crush, crush, crush jump, etc.