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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 1 Activity 2 Activity 3 Budgeted Cost $ 84,000 $ 59,000 $110,000 Budgeted Activity Product A Product B Product C 7,400 10,400 21,400 8,400 16,400 9,400 3,900 2,400 3,025 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 $2.14. The activity rate under the activity-based costing system for Activity 2 is $3.38. The activity rate under the activity-based costing system for Activity 2 is $11.80
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