3 company uses activity based costing to determine the costs of its three produc
ID: 2509857 • Letter: 3
Question
3 company uses activity based costing to determine the costs of its three products: A, B, and C. The budgeted cost and actvity for each of the company's three actvity cost pools are shown in the following ablc Budgoted Activity Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost Product A Product B Product C $70,800 $45,860 $82,800 6,900 7,080 2,580 9,000 15,680 1,088 8,986 1,625 Which o the following statements is true regarding this company's activity rates? Multple Choice Tha activity rato undor tho activity basad casting systam for Activity 2 is $2 00 The activity rae under the activity-besed csting systern for Activity 2 is $16.00. The activity rate under the actity-based costing system for Actvity 2 's $1.50. The activity rate under the actviry-based costing system for Actvity 2 Is $19.50 The activity rate under the activity besed casting systerm for Activity 2 is $281Explanation / Answer
The correct answer is :
The activity Rate under the Activity based costing system is $ 1.50
Note :
Budgeted Cost Product A Product B Product C Total Activity Rate ( Cost / Total ) Activity 2 45,000 7,000 15,000 8,000 30,000 1.50Related Questions
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