Carpo Company uses activity-based costing to determine the costs of its two prod
ID: 2490482 • Letter: C
Question
Carpo Company uses activity-based costing to determine the costs of its two products: A and B. The estimated total cost and expected activity for one of the company's three activity cost pools are as follows.
Expected Activity
Estimated Cost
Product A
Product B
$28,000
400
300
Part (a)
What is the activity rate under the activity-based costing system for this activity?
Part (b)
How much total cost will be assigned to Products A and B for this activity?
Expected Activity
Estimated Cost
Product A
Product B
$28,000
400
300
Explanation / Answer
Carpo Company uses activity-based costing to determine the costs of its two prod