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You work for Thunderduck Custom Tables Inc. The company designs and manufactures specialty tables. Thunderduck Custom Tables uses ABC to determine the costs of its
You work for Thunderduck Custom Tables Inc. The company designs and manufactures specialty tables. Thunderduck Custom Tables uses ABC to determine the costs of its three products: A, B, and C. The budgeted cost and cost driver activity for each of Thunderduck Custom Table's three activity cost pools follow. Activity Cost Pools Activity i Activity 2 Activity 3 Budgeted Cost $ 103,950 $ 60,950 $ 64,605 Budgeted Activity of Cost Driver Product A Product B Product c 18,600 8,300 4,600 7,300 13,600 5,600 1,275 1,000 2,150 Required: Compute the activity rates for each of Thunderduck Custom Table's three activities. Thunderduck Custom Table's uses activity based costing. Activity Expected Activity Driver Activity Rate 1 Expected Costs $ 103,950 60,950 64,605 2 3
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