Question
Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 310
Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 310 units and of Product B is 620 units. There are three activity cost pools, with total cost and activity as follows:
| Total Activity | |||||
| Activity Cost Pools | Total Cost | Product A | Product B | Total | |
| Activity 1 | $ | 17,840 | 600 | 200 | 800 |
| Activity 2 | $ | 31,320 | 1,650 | 1,250 | 2,900 |
| Activity 3 | $ | 10,292 | 115 | 215 | 330 |
The activity rate for Activity 2 is closest to:
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Ecology, Sustainable Development And Accounting
Authors: Seleshi Sisaye
1st Edition
0415816351, 9780415816359
