A company uses activity-based costing to determine the costs of its two products: A and B. The

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A company uses activity-based costing to determine the costs

of its two products: A and B. The budgeted cost and activity

for each of the company’s three activity cost pools follow.

image text in transcribed

The activity rate under the activity-based costing method
for Activity 3 is
a. $4.00. c. $18.00.
b. $8.59. d. $20.00.

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Financial And Managerial Accounting Information For Decisions

ISBN: 9781259726705

7th Edition

Authors: John Wild, Ken Shaw, Barbara Chiappetta

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Question Posted: Mar 10, 2024 10:00 AM

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A company uses activity-based costing to determine the costs of its two products: A and B. The

Question:

Budgeted Activity Activity Cost Pool Budgeted Cost Product A Product B Total Activity 1 $19,800 800 300 1,100 Activity 2 16,000 2,200 1,800 4,000 Activity 3 14,000 400 300 700

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Financial And Managerial Accounting Information For Decisions

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