Monson Corporation has two products: G and P. The company uses activity-based co
ID: 2490770 • Letter: M
Question
Monson Corporation has two products: G and P. The company uses activity-based costing and has prepared the following analysis showing the total cost and activity for each of its three activity cost pools: Activity Activity Cost Pool Total Cost Product G Product P Total Activity 1 $160,055 390 2,300 2,690 Activity 2 $91,545 790 2,800 3,590 Activity 3 $105,887 590 3,980 4,570 The annual production and sales of Product G is 118,240 units. The annual production and sales of Product P is 34,200. The activity rate under the activity-based costing system for Activity 2 is closest to:
Explanation / Answer
Activity(2) rate= 91545/3590=$25.5