Question
Nick Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's
Nick Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:
Expected Activity
Activity Cost Pool Estimated Costs Product A Product B Total
Activity 1 $32,600 700 300 1,000Activity 2$17,600600 200 800Activity 3 $52,500 400100500
The activity rate under the activity-based costing system for Activity 3 is closest to:
| a. | $44.65 | |
| b. | $105.00 | |
| c. | $525.00 | |
| d. | $205.00 |
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Auditing The Art and Science of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser
12th Canadian edition
133098230, 978-0132791564, 132791560, 978-0133098235
