Library Resources Company uses activity-based costing. The company produces soft

Question

Library Resources Company uses activity-based costing. The company produces soft and hard-cover books. The estimated costs and expected activity for each of the activity pools follow: Activity Estimated Expected Activity Cost Pool Cost Hard-Cover Soft-Cover Total Activity 1 $15,675 800 300 1,100 Activity 2 $11,900 500 200 700 Activity 3 $36,000 800 400 1,200 To which of the following is the rate for activity 3 that will used to apply costs to Soft-cover books closest? $90.00 $12,000 $30.00 Not enough information is provided.

Explanation / Answer

Hi, 30 is the correct answer. Thanks, Aman

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