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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 below. Activity Budgeted Cost Activity Cost Driver Budgeted Activity Product A Product B Product C Activity 1 $ 140,000 Units inspected 7,500 4,000 6,000 Activity 2 $ 54,000 Purchase orders 2,500 2,000 1,500 Activity 3 $ 28,000 Square feet 15,000 25,000 30,000 Compute the company's activity rates under activity-based costing for each of the three activities
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