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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 i Activity 2 Activity 3 Budgeted Activity Budgeted Cost Product Product B Product C $78,000 6,800 9,800 20,800 $53,000 7,800 15,800 8,800 $98,000 3,300 1,800 2,425 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 $2.09. The activity rate under the activity-based costing system for Activity 2 is $13.02 The activity rate under the activity-based costing system for Activity 2 is $1.64 The activity rate under the activity-based costing system for Activity 2 is $16.74 O The activity rate under the activity-based costing system for Activity 2 is $3.54
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