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 areshown in the following table:Budgeted ActivityActivityBudgeted Cost Activity Cost DriverProduct AProduct BProduct C$ 70,000$ 45,000$ 82,000Square feetUnits inspectedActivity 16,0009,00020,000Activity 2Activity 37,00015,0008,000Setups2,5001,0001,625What are the activity rates for the three activities under activity-based costing?Multiple Choice(1) $2.00 per square foot; (2) $3.00 per unit; (3) $3.50 per setup.(1) $3.50 per square foot; (2) $1.50 per unit; (3) $32,80 per setup.(1) $3.50 per square foot; (2) $3.00 per unit; (3) $16.00 per setup.(1) $2.00 per square foot: (2) $1.50 per unit; (3) $16.00 per setup.

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Description: 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 areshown in the following table:Budgeted ActivityActivityBudgeted Cos

Formula: Activity rate = Budgeted cost / Budgeted activity drivers

Business

Accounting

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 in the following table: Budgeted Activity Product B Product C Activity Activity 1 Activity 2 Activity 3 Budgeted Cost Activity Cost Driver Product A $ 70,000 $ 45,000 $ 82,000 Square feet Units inspected 6,000 9,000 20,000 8,000 1,625 7,000 15,000 Setups 2,500 1,000 What are the activity rates for the three activities under activity-based costing? Multiple Choice me200 cer souare foot: (2IS3.00 unit: (2) sa 50 rsetun

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 in the following table: Budgeted Activity Product B Product C Activity Activity 1 Activity 2 Activity 3 Budgeted Cost Activity Cost Driver Product A $ 70,000 $ 45,000 $ 82,000 Square feet Units inspected 6,000 9,000 20,000 8,000 1,625 7,000 15,000 Setups 2,500 1,000 What are the activity rates for the three activities under activity-based costing? Multiple Choice me200 cer souare foot: (2IS3.00 unit: (2) sa 50 rsetun

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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