Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm wants to use approximated ABC that uses just two activity rates (using the two largest activity cost pools). Before approximating their ABC system,

A firm wants to use approximated ABC that uses just two activity rates (using the two largest activity cost pools). Before approximating their ABC system, they have the following activity cost pools (budgeted driver amounts are given in parentheses).

  • Cost pool A: $212,072 (372)
  • Cost pool B: $10,435 (557)
  • Cost pool C: $7,319 (359)
  • Cost pool D: $171,756 (1058)
  • Cost pool E: $21,670 (1144)
  • Cost pool F: $15,815 (1145)
  • Cost pool G: $5,064 (1727)

What is the new activity rate for Cost pool D (round to nearest cent)?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting Information for creating and managing value

Authors: Kim Langfield Smith, David Smith, Paul Andon, Ronald Hilton, Helen Thorne

8th edition

9781760420413 , 978-1760420406

More Books

Students also viewed these Accounting questions

Question

Values: What is important to me?

Answered: 1 week ago

Question

Purpose: What do we seek to achieve with our behaviour?

Answered: 1 week ago