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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
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 Product B Product C Activity Cost Pools Activity 1 Activity 2 Activity 3 Required: Budgeted Cost $123,950 $ 76,950 Product A 19,400 7,700 $ 74,305 1,475 Compute the activity rates for each of the company's three activities. Activity Expected Costs Expected Activity Driver Activity Rate 1 $ 123,950 2 76,950 3 74,305 8,700. 5,400 14,400 6,400 1,000 2,350
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