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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: Budgeted Activity Activity Cost Pool Activity! Activity 2 Activity 3 Budgeted Cost $84,000 $59,000 $110,000 Product A 7,400 8,400 3,900 Product B 10,400 16,400 2,400 Product C 21.400 9,400 3,025 Which of the folowing statements is true regarding this company's activity rates? O The activity rote under the activity-based costing system for Activity 2 is $15.66 The activity rate under the activity-based costing system for Activity 2 is $11.80 O The activity rate under the actvity-based costing system for Activity 2 is $173 O The activity rate under the activity-based costing system for Activity 2 is $2.14 O The activity rate under the activity-based costing system for Activity 2 is $3.38
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