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

question 95

Multiple Choice

Selena 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 }$ $\begin{array} { | l | r | r | r | r | } \hline \begin{array} { l } \text { Activity Cost } \\\text { Panl }\end{array} & \text { Estimated Cost } & \text { Product A } & \text { Product B } & \text { Total } \\\hline \text { Activity 1 } & \$ 17,600 & 800 & 300 & 1,100 \\ \hline \text { Activity 2 } & 12,000 & 500 & 200 & 700 \\\hline \text { Activity 3 } & 26,000 & 800 & 400 & 1,200 \\\hline\end{array}$
The activity rate under the activity-based costing system for Activity 3 is closest to which of the following?

• A) $18.53.
• B) $21.67.
• C) $46.33.
• D) $65.00. $26,000/1,200 = $21.67.

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Definitions:

Infrastructure

The basic physical and organizational structures needed for the operation of a society or enterprise, such as roads, bridges, water supply, and electric grids.

Communications Facilities

Infrastructure and equipment used for the transmission, emission, or reception of signs, signals, writing, images, sounds, or information of any nature by wire, radio, optical, or other electromagnetic systems.

Industrial Plants

Facilities that contain machinery and equipment for manufacturing or processing goods and materials.

Lack of Infrastructure

Refers to the insufficiency or absence of physical and organizational structures and facilities required for the operation of a society or enterprise.