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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 1 Activity 2 Activity 3 Budgeted Cost $ 83,000 $ 58,000 $108,000 Product A Product BProduct C 7,300 8,300 3,800 10,300 16,300 2,300 21,300 9,300 2,925 Which of the following statements is true regarding this company's activity rates? Multiple Choice The activity rate under the activity-based costing system for Activity 2 is $2.13 The activity rate under the activity-based costing system for Activity 2 is $11.97. The activity rate under the activity-based costing system for Activity 2 is $1.71. The activity rate under the activity-based costing system for Activity 2 is $15.81 The activity rate under the activity-based costing system for Activity 2 is $3.34 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 Budgeted Cost Product A Product B Product C Activity 1 Activity 2 Activity 3 $73,000 $48,000 $88,000 6,300 7,300 2,800 9,300 15,300 1,300 20,300 8,300 1,925 How much overhead will be assigned to Product B using activity-based costing? Multiple Choice $61,665.41 $82,287.94 $64,663.26 $209,000.00 $73,000.00
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