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 350
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 350 units and of Product B is 700 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 | $ | 27,240 | 800 | 400 | 1,200 |
| Activity 2 | $ | 36,300 | 1,850 | 1,450 | 3,300 |
| Activity 3 | $ | 10,496 | 135 | 235 | 370 |
The activity rate for Activity 2 is closest to:
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Core Concepts Of Information Technology Auditing
Authors: James E Hunton, Stephanie M Bryant, Nancy A Bagranoff
1st Edition
0471222933, 9780471222934
