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QS 17-15 Computing activity rates LO P3 A company uses activity-based costing to determine the costs of its three products: A, B, and C. The

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QS 17-15 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 $90,000 $50,000 $57,750 Budgeted Activity of Cost Driver Product A Product B Product C 18,000 8,000 4,000 7,000 13,000 5,000 1,125 1,000 2,000 Required: Compute the activity rates for each of the company's three activities. Activity Expected Costs Expected Activity Activity Rate Driver 1 S 90,000 2 50,000 3 57,750 3

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