Paul Company Has Two Products: a and B $\quad$ $\quad$

question 111

Multiple Choice

Paul Company has two products: A and B.The company uses activity-based costing.The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Expected Activity }$$\begin{array} { | l | r | r | r | r | } \hline \begin{array} { l } \text { Activity Cost } \\\text { Pool }\end{array} & \text { Estimated Cost } & \text { Product A } & \text { Product B } & \text { Total } \\\hline \text { Activity 1 } & \$ 22,000 & 400 & 100 & 500 \\\hline \text { Activity 2 } & 16,240 & 380 & 200 & 580 \\\hline \text { Activity 3 } & 14,600 & 500 & 250 & 750 \\\hline\end{array}$
The activity rate under the activity-based costing system for Activity 3 is closest to which of the following?

• A) $19.47.
• B) $28.87.
• C) $58.40.
• D) $70.45. $14,600/750 = $19.47.

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Definitions:

Body Wall

The outermost layer of an organism's body, which provides structural support and protection; in many invertebrates, it consists of a cuticle or exoskeleton.

Gastrovascular Cavity

A digestive compartment with a single opening found in certain invertebrates, serving both digestive and circulatory functions.

Dietary Fiber

Indigestible parts of plant foods that help to maintain a healthy digestive system, regulate blood sugar, and lower cholesterol levels.

Reabsorbed

The process by which substances are taken back into the body's tissues, particularly in reference to nutrients or fluids after initial filtration or secretion.