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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 Oriver Activity Cost Pools Budgeted cost Product Producto Product Activity 1 $140,000 20,000 9,000 6,000 Activity 2 $ 90,000 8,000 15,000 7,000 Activity $ 82,000 1,625 3,000 2,500 Required: Compute the activity rates for each of the company's three activities, Activity Rate Activity Expected Cests Expected Activity Driver 1 5 140,000 2 00,000 3 82.000
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