94 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 company's three activity cost pools are shown below. 0.2 points Activity Activity 1 Activity 2 Budgeted Cost $ 140,000 Activity Cost Driver Units inspected Budgeted Activity Product A Product B Product C 7,500 4,000 6,000 $ 54,000 Purchase orders 2,500 2,000 1,500 eBook Activity 3 $ 28,000 Square feet 15,000 25,000 30,000 Compute the company's activity rates under activity-based costing for each of the three activities.
94 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 company's three activity cost pools are shown below. 0.2 points Activity Activity 1 Activity 2 Budgeted Cost $ 140,000 Activity Cost Driver Units inspected Budgeted Activity Product A Product B Product C 7,500 4,000 6,000 $ 54,000 Purchase orders 2,500 2,000 1,500 eBook Activity 3 $ 28,000 Square feet 15,000 25,000 30,000 Compute the company's activity rates under activity-based costing for each of the three activities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:94
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 company's three activity cost pools are shown below.
0.2
points
Activity
Activity 1
Activity 2
Budgeted Cost
$ 140,000
Activity Cost
Driver
Units inspected
Budgeted Activity
Product A
Product B
Product C
7,500
4,000
6,000
$ 54,000
Purchase orders
2,500
2,000
1,500
eBook
Activity 3
$ 28,000
Square feet
15,000
25,000
30,000
Compute the company's activity rates under activity-based costing for each of the three activities.
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