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6. 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
6.
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 | |||||||||
Activity Cost Pool | Budgeted Cost | Product A | Product B | Product C | |||||
Activity 1 | $ | 70,000 | 6,000 | 9,000 | 20,000 | ||||
Activity 2 | $ | 45,000 | 7,000 | 15,000 | 8,000 | ||||
Activity 3 | $ | 82,000 | 2,500 | 1,000 | 1,625 |
What are the activity rates for the three activities under activity-based costing?
Group of answer choices
(1) $2.00; (2) $3.00; (3) $3.50.
(1) $3.50; (2) $1.50; (3) $32,80.
(1) $3.50; (2) $3.00; (3) $16.00.
(1) $2.00; (2) $1.50; (3) $32.80.
(1) $2.00; (2) $1.50; (3) $16.00.
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