Question: QS 17-10 (Algo) Computing activity rates for activity-based costing LO P3 A company sells two types of products, standard and deluxe. It prepares the following

 QS 17-10 (Algo) Computing activity rates for activity-based costing LO P3

QS 17-10 (Algo) Computing activity rates for activity-based costing LO P3 A company sells two types of products, standard and deluxe. It prepares the following analysis showing budgeted cost and cost driver activity for each of its three activities Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Deluxe Factory Services $ 179,800 Setup $ 18,000 Setups Quality control $ 217,000 Units inspected 2,500 5,250 7,750 Compute an activity rate for each activity using activity-based costing Square feet Standard 3,000 300 2,800 200 Total 5,800 500 Budgeted Activity Usage Activity Rate Activity Factory services Setup Quality control Budgeted Cost 179,800 18,000 217,000 cos

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