Check my wor A company uses activity-based costing to determine the costs of its
ID: 2544687 • Letter: C
Question
Check my wor 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 Budgeted Activity of Cost Driver Activity Cost Pools Activity 1 Activity 2 Activity 3 Budgeted Cost Product A Product B Product c $113,750 68,750 69, 375 19,000 8,500 5, 000 7,500 1,000 6,000 1,375 000 2,250 es Required: Compute the activity rates for each of the company's three activities pecte osts Activity Driver Activity Rate 1 113,750 68,750 69,375Explanation / Answer
Activity Expected Cost Expected Activity rate Activity Drivers 1 113750 32500 3.5 2 68750 27500 2.5 3 69375 4625 15 Note: Activity Drivers= Sum of Drivers of all three products Note: Activity rate = Expected Activity cost / Expected Activity drivers