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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 | $425,000 | 1,700 | 680 | 1,870 |
| Activity 2 | $144,900 | 1,890 | 1,575 | 2,835 |
| Activity 3 | $85,000 | 2,400 | 1,000 | 1,600 |
Compute the companys activity rates under activity-based costing for each of the three activities.
Answer
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