A company uses activity-based costing to determine the costs of its three produc

Question

A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and cost driver activity for each of the company's three activity cost pools follow. Budgeted Activity of Cost Driver Activity Cost Pools Activity 1 Activity 2 Activity 3 Budgeted Cost Product A $94,550 $53,550 $59,995 18,200 7,100 1,175 Product BProduct 4,200 5,200 2,050 8,100 13,200 1,000 Required Compute the activity rates for each of the company's three activities. es Activity Rate vity Driver S94,550 53,550 59,996

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Budgeted Activity Activity Product A =a Product B =b Product C =c Expected Activity driver d = a+b+c Budgeted Cost =e Activity Rate = e/d                                                                    1.00              18,200.00                8,100.00                    4,200.00                          30,500.00             94,550.00                            3.10                                                                    2.00                7,100.00              13,200.00                    5,200.00                          25,500.00             53,550.00                            2.10                                                                    3.00                1,175.00                1,000.00                    2,050.00                             4,225.00             59,995.00                          14.20

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