Public Compromat, Inc. uses activity$-$based costing and wants to adopt approximated ABC, using the two largest cost pools.

The firm's current budgeted activity cost pools are as follows.

Preplanning activity cost pool: $$50,000$

Assembly activity cost pool: $$6,500$

Execution activity cost pool: $$112,000$

Follow$-$up activity cost pool: $$1,900$

The budgeted activity driver for the Preplanning activity cost pool is $10,000.$ The budgeted activity driver for the Execution activity cost pool is $15,000$

What is the Preplanning activity rate under normal ABC and under approximated ABC $($round to the nearest cent if necessary$)?$

Answer rating: 100% (QA)

To calculate the Preplanning activity rate under normal ABC and approximated ABC well first find the ... View the full answer