Nick Company has two products: A and B. The company uses activity-based costing. The estimated total cost
Question:
Nick 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
Activity Cost Pool Estimated Costs Product A Product B Total
Activity 1 $32,600 700 300 1,000
Activity 2 $17,600 600 200 800
Activity 3 $52,500 400 100 500
The activity rate under the activity-based costing system for Activity 3 is closest to:
a. | $44.65 | |
b. | $105.00 | |
c. | $525.00 | |
d. | $205.00 |
Process Dynamics And Control
ISBN: 978-0471000778
2nd Edition
Authors: Dale E. Seborg, Thomas F. Edgar, Duncan A. Mellich