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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 activity for each of
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: Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Activity Budgeted Cost Product Product B Product $72,000 6,200 9, 200 20,200 $ 47,000 7,200 15,200 8,200 $86,000 2,700 1,200 1.825 Multiple Choice O The activity rate under the activity-based costing system for Activity 2 is $15.02. O The activity rate under the activity-based costing system for Activity 2 is $1.54. O The activity rate under the activity-based costing system for Activity 2 is $2.02. O The activity rate under the activity-based costing system for Activity 2 is $18.58. C ) The activity rate under the activity-based costing system for Activity 2 is $2.89
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