Paul Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Expected activity cost Activity Estimated cost Product A Product B Total Activity1 $22,000 400 100 500 Activity2 $16,240 380 200 580 Activity3 $14,600 500 250 750 The activity rate under the activity-based costing system for Activity 3 is closest to: - $70.45. - $28.87. - $19.47. -$58.40.

Paul Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Expected activity cost Activity Estimated cost Product A Product B Total Activity1 $22,000 400 100 500 Activity2 $16,240 380 200 580 Activity3 $14,600 500 250 750 The activity rate under the activity-based costing system for Activity 3 is closest to: - $70.45. - $28.87. - $19.47. -$58.40.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 8CE: Electan Company produces two types of printers. The company uses ABC, and all activity drivers are...

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