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Question
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the companys three activity cost pools are shown in the following table:
| Budgeted Activity | ||||
| Activity Cost Pool | Budgeted Cost | Product A | Product B | Product C |
| Activity 1 | $70,000 | 6,000 | 9,000 | 20,000 |
| Activity 2 | $45,000 | 7,000 | 15,000 | 8,000 |
| Activity 3 | $82,000 | 2,500 | 1,000 | 1,625 |
What are the activity rates for the three activities under activity based costing?
A. (1) $2.00; (2) $3.00; (3) $3.50.
B. (1) $3.50; (2) $1.50; (3) $32,80.
C. (1) $3.50; (2) $3.00; (3) $16.00.
D. (1) $2.00; (2) $1.50; (3) $16.00.
E. (1) $2.00; (2) $1.50; (3) $32.80.
Answer
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