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 for
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 company's three activity cost pools follow. Activity Cost Pools Activity 1 Activity 2 Activity 3 Budgeted Cost $134,550 $ 85,550 $ 79,395 Budgeted Activity of Cost Driver Product Product B Product C 19,800 8,900 5,800 7.900 14,800 6,800 1,575 1,000 2,450 Required: Compute the activity rates for each of the company's three activities. Activity Expected Expected Costs Activity Driver Activity Rate $ 134.550 4.60 85,550 29.245 29,745.00 79,395 29.745 29.745.00
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