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QS 17-10 (Algo) Computing activity rates for activity-based costing LO P3 A company sells two types of products: standard and deluxe. It prepares the following
QS 17-10 (Algo) Computing activity rates for activity-based costing LO P3 A company sells two types of products: standard and deluxe. It prepares the following analysis showing budgeted cost and cost dri activity for each of its three activities. Activity Cost Driver Square feet Setup Setups Quality control Units inspected Compute an activity rate for each activity using activity-based costing. Activity Factory services Activity Factory services Setup Quality control Budgeted Cost $ 203,000 $ 20,000 $ 248,000 Budgeted Cost $ 203,000 20,000 248,000 Budgeted Activity Usage Budgeted Activity Usage Deluxe 2,800 200 5,250 Standard 3,000 300 2,500 Activity Rate Total 5,800 500 7,750
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