Library Resources Company uses activity-based costing. The company produces soft
ID: 2349256 • Letter: L
Question
Library Resources Company uses activity-based costing. The company produces soft and hard-cover books. The estimated costs and expected activity for each of the activity pools follow:Activity Estimated Expected Activity
Cost Pool Cost Hard-Cover Soft-Cover Total
Activity 1 $15,675 800 300 1,100
Activity 2 $11,900 500 200 700
Activity 3 $36,000 800 400 1,200
To which of the following is the rate for activity 3 that will used to apply costs to Soft-cover books closest?
$90.00
$12,000
$30.00
Not enough information is provided.
Explanation / Answer
$90.00