MC Qu. 130 A company uses activity-based costing to... A company uses activity-b
ID: 2591961 • Letter: M
Question
MC Qu. 130 A company uses activity-based costing to... A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Budgeted Activity Cost Pool Activity 1 Activity 2 Activity 3 Product A Product B Product C Cost $72,000 $47,000 $86,000 6,200 7,200 2,780 9,200 15,200 1,200 20,200 8,200 1,825 Which of the following statements is true regarding this company's activity rates? Multiple Choice The activity rate under the activity-based costing system for Activity 2 is $2.02 Prev 41 of 50 lll NextExplanation / Answer
Activity 1 rate = 72000/(6200+9200+20200) = 2.02
Activity 2 rate = 47000/(7200+15200+8200) = 1.54
Activity 3 rate = 86000/(2700+1200+1825) = 15.02
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