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The activity based costing information for Starstruck Company is detailed below. There were 4,000 units of the Standard product made during the year, and 2,000
The activity based costing information for Starstruck Company is detailed below. There were 4,000 units of the Standard product made during the year, and 2,000 of the Deluxe. Expected Total cost Expected Level of ActivityExpected Level of activity Activity 1 Activity 2 $40,000 $30,000 Standard 6,000 2,000 Deluxe 4,000 3,000 What is the activity rate (amount applied) for each unit of activity 1? A. $6.00 B. $4.00 C. $10.00 D. $2.50
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