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: Activity Cost Pool Budgeted Cost Product A Product B Product C Activity 1 Activity 2 Activity 3 $ 70,000 Budgeted Activity $ 45,000 9,000 6,000 7,000 20,000 15,000 8,000 $ 82,000 2,500 1,000 1,625 What are the activity rates for the three activities under activity-based costing?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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
Activity Cost Pool
Activity 1
Activity 2
Activity 3
Budgeted Cost Product A Product B Product C
$
70,000
$ 45,000
6,000
7,000
9,000
15,000
$ 82,000 2,500 1,000
20,000
8,000
1,625
What are the activity rates for the three activities under activity-based
costing?
4
Transcribed Image Text: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 Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost Product A Product B Product C $ 70,000 $ 45,000 6,000 7,000 9,000 15,000 $ 82,000 2,500 1,000 20,000 8,000 1,625 What are the activity rates for the three activities under activity-based costing? 4
What are the activity rates for the three activities under activity-based
costing?
O (1) $2.00; (2) $1.50; (3) $16.00
O (1) $3.50; (2) $1.50; (3) $32,80
O (1) $3.50; (2) $3.00; (3) $16.00
O (1) $2.00: (2) $1.50; (3) $32.80
Transcribed Image Text:What are the activity rates for the three activities under activity-based costing? O (1) $2.00; (2) $1.50; (3) $16.00 O (1) $3.50; (2) $1.50; (3) $32,80 O (1) $3.50; (2) $3.00; (3) $16.00 O (1) $2.00: (2) $1.50; (3) $32.80
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