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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 companys three activity cost pools follow.
Budgeted Activity of Cost Driver Activity Cost Pools Activity 1 Activity 2 Activity 3 Budgeted Cost $90,000 $50,000 $57,750 Product A 18,000 7,000 1,125 Product BProduct C 8,000 13,000 1,000 4,000 5,000 2,000 Required: Compute the activity rates for each of the company's three activities. Expected Expected Activity Driver Activity Costs Activity Rate $90,000 50,000 57,750 2Step by Step Solution
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