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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. Activity Cost Pools Activity 1 Activity 2 Activity 3 Budgeted Cost $156,950 $103,950 $ 90,055 Budgeted Activity of Cost Driver Product A Product B Product C 20,600 9,300 6,600 8,300 15,600 7,600 1,775 1,000 2,650 Required: Compute the activity rates for each of the company's three activities. Activity Rate Activity Expected Costs Expected Activity Driver 1 $ 156,950 2 103,950 3 90,055
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