A Company Uses Activity-Based Costing to Determine the Costs of Its

question 68

Multiple Choice

A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Which of the following statements is true regarding this company's activity rates?

• A) The activity rate under the activity-based costing system for Activity 2 is $2.00.
• B) The activity rate under the activity-based costing system for Activity 2 is $16.00.
• C) The activity rate under the activity-based costing system for Activity 2 is $1.50.
• D) The activity rate under the activity-based costing system for Activity 2 is $19.50.
• E) The activity rate under the activity-based costing system for Activity 2 is $2.81.

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Definitions:

Accumulated Time

The total time that has been recorded or tallied up, often used in contexts where time durations are important, such as in timers or monitoring systems.

Timer Tag Name

An identifier used in programming and automation that refers to a specific timer, tracking its duration or status within a control system.

Diverter Gate Solenoid

A diverter gate solenoid in an automated system is an electromechanical device used to control the direction or path of material flow in a conveying system by actuating diverter gates.