Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The an production and sales of Product A is 270 units and of Product B is 540 units. There are three activity cost pools, w and activity as follows: Activity Cost Pools Total Cost Total Activity Product B Total $ 20,140 800 $ 26,500 $10,088 95 The activity rate for Activity 2 is closest to: Product A Activity 1 Activity 2 Activity 3 1,450 150 950 1,050 2,500 195 290

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual
production and sales of Product A is 270 units and of Product B is 540 units. There are three activity cost pools, with total cost
and activity as follows:
Activity Cost Pools Total Cost Total Activity
Product B
Total
$ 20,140 800
$26,500 1,450
$10,088 95
The activity rate for Activity 2 is closest to:
Product A
Activity 1
Activity 2
Activity 3
25.24
33.13
18.28
O 10.60
150
950
1,050 2,500
290
195
ook Ai
Transcribed Image Text:Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 270 units and of Product B is 540 units. There are three activity cost pools, with total cost and activity as follows: Activity Cost Pools Total Cost Total Activity Product B Total $ 20,140 800 $26,500 1,450 $10,088 95 The activity rate for Activity 2 is closest to: Product A Activity 1 Activity 2 Activity 3 25.24 33.13 18.28 O 10.60 150 950 1,050 2,500 290 195 ook Ai
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