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Jennifer Company has two products: A and B. The company uses activity-based costing. The total cost and activity for each of the company's three activity
Jennifer Company has two products: A and B. The company uses activity-based costing. The total cost and activity for each of the company's three activity cost pools are as follows:
Total Activity | ||||
Activity Cost Pool | Total Cost | Product A | Product B | Total |
Activity 1 | $23,500 | 400 | 100 | 500 |
Activity 2 | $18,000 | 500 | 200 | 700 |
Activity 3 | $34,600 | 600 | 300 | 900 |
The activity rate under the activity-based costing system for Activity 3 is closest to:
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