Question: A company uses activity- based costing to determine the costs of its three products: A, B, and C. The budgeted cost and cost driver activity
A company uses activity- based costing to determine the costs of its three products: A, B, and C. The budgeted cost and cost driver activity for each of the companys three activity cost pools follow.
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Compute the activity rates for each of the companys threeactivities.
Budgeted Activity of Cost Driver Product B 9,000 15,000 1,000 Activity Cost Pool Budgeted Cost $70.000 45,000 82,000 Product A 6,000 7.000 2,500 Product C 20,000 8.000 1.625 Activity I$ Activity 2..
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