QS 04-15 Computing activity rates LO P3 A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and cost driver activity for each of the company's three activity cost pools follow. Activity Cost Pools Activity 1 Activity 2 Activity 3 Budgeted Cost $140,000 $ 90,000 $ 82,000 Budgeted Activity of Cost Driver Product B Product C Product A 20,000 8,000 1,625 9,000 6,000 15,000 7,000 1,000 2,500 Required: Compute the activity rates for each of the company's three activities. Activity Expected Costs Expected Activity Activity Rate Driver 1 $ 140,000 2 3 90,000 82,000