Question
1.Paul Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's
1.Paul Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:
Activity Cost Pool
Est. Cost
Product A
Product B
Total
Activity 1
$22,000
400
100
500
Activity 2
33,872
380
200
580
Activity 3
14,600
500
250
750
The activity rate under the activity-based costing system for Activity 2 is closest to which of the following?
a.$70.45.
b.$58.40.
c.$19.47.
d.$28.87.
_______
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Excel Applications For Accounting Principles
Authors: Gaylord SmithBruce Walz
4th Edition
1133388027, 9781133388029
