Reference: 05-05
Abel Company Uses Activity-Based Costing -The Activity Rate for Activity 2 Is Closest T?
A)$10

question 13

Multiple Choice

Reference: 05-05
Abel Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A are 200 units and of Product B are 400 units. There are three activity cost pools, with estimated costs and expected activity as follows: $$\begin{array} { | l | l | l | l | l | } \hline \text { Activity } & & \text { Expected Activity } \\\hline \text { Cost Pool } & \text { Estimated Cost } & \text { Product A } & \text { Product B } & \text { Total } \\\hline \text { Activity 1 } & \$ 16,660 & 600 & 100 & 700 \\\hline \text { Activity 2 } & \$ 18,450 & 1,100 & 700 & 1,800 \\\hline \text { Activity 3 } & \$ 9,731 & 60 & 160 & 220 \\\hline\end{array}$$
-The activity rate for Activity 2 is closest t?

• A)$10.25.
• B)$24.91.
• C)$16.77.
• D)$26.36.

---

Definitions:

Point Of Origin

The fixed point from which coordinates are measured in a coordinate system, often represented as (0,0) in two dimensions.

Zero Point

A reference point from which measurements or coordinates are determined in various applications, including machining and mathematics.

Relative Coordinate Programming

A method in computer-aided manufacturing where each new point or command is given as a distance relative to the preceding point.

Origin Point

The point in a coordinate system from which all measurements begin, often represented as (0,0) in a two-dimensional space or (0,0,0) in three-dimensional space.