Question
Paul 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
- Paul 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:
Activity Cost Pool | Est. Cost | Product A | Product B | Total |
Activity 1 | $22,000 | 400 | 100 | 500 |
Activity 2 | 40,861 | 380 | 200 | 580 |
Activity 3 | 14,600 | 500 | 250 | 750 |
The activity rate under the activity-based costing system for Activity 2 is closest to which of the following?
- $70.45.
- $58.40.
- $19.47.
- $28.87.
_______
- Paul 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:
Activity Cost Pool | Est. Cost | Product A | Product B | Total |
Activity 1 | $22,000 | 400 | 100 | 500 |
Activity 2 | 40,861 | 380 | 200 | 580 |
Activity 3 | 14,600 | 500 | 250 | 750 |
The activity rate under the activity-based costing system for Activity 2 is closest to which of the following?
- $70.45.
- $58.40.
- $19.47.
- $28.87.
_______
- Paul 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:
Activity Cost Pool | Est. Cost | Product A | Product B | Total |
Activity 1 | $22,000 | 400 | 100 | 500 |
Activity 2 | 40,861 | 380 | 200 | 580 |
Activity 3 | 14,600 | 500 | 250 | 750 |
The activity rate under the activity-based costing system for Activity 2 is closest to which of the following?
- $70.45.
- $58.40.
- $19.47.
- $28.87.
_______
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