A company uses activity-based cong to determine the costs of its three products: A, B, and...
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A company uses activity-based cong 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 Activity 1 Activity 2 Activity 3 Budgeted Cost $ 88,000 $ 63,000 $118,000 Budgeted Activity Product A Product 8 Product C 7,800 8,800 4,300 10,800 16,800 2,800 21,800 9,800 3,425 Which of the following statements is true regarding this company's activity rates? O O The activity rate under the activity-based costing system for Activity 2 is $2.18. W The activity rate under the activity-based costing system for Activity 2 is $11.21. The activity rate under the activity-based costing system for Activity 2 is $1.78. The activity rate under the activity-based costing system for Activity 2 is $15.17. The activity rate under the activity-based costing system for Activity 2 is $3.54. A company uses activity-based cong 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 Activity 1 Activity 2 Activity 3 Budgeted Cost $ 88,000 $ 63,000 $118,000 Budgeted Activity Product A Product 8 Product C 7,800 8,800 4,300 10,800 16,800 2,800 21,800 9,800 3,425 Which of the following statements is true regarding this company's activity rates? O O The activity rate under the activity-based costing system for Activity 2 is $2.18. W The activity rate under the activity-based costing system for Activity 2 is $11.21. The activity rate under the activity-based costing system for Activity 2 is $1.78. The activity rate under the activity-based costing system for Activity 2 is $15.17. The activity rate under the activity-based costing system for Activity 2 is $3.54.
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Auditing and Assurance services an integrated approach
ISBN: 978-0133125689
15th edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
Posted Date:
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