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Question
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The activity rates and activity levels for each of the companys three activity cost pools are shown below.
| Budgeted Activity | ||||
| Activity Cost Pool | Activity Rate | Product A | Product B | Product C |
| Activity 1 | $19 | 700 | 1,150 | 650 |
| Activity 2 | $27 | 2,400 | 2,100 | 1,500 |
| Activity 3 | $62 | 600 | 1,350 | 1,050 |
Compute the companys budgeted cost for each of the three activities under activity-based costing.
Answer
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