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:

Felony

A serious criminal offense that is usually punishable by imprisonment for more than one year or by death.

Capital Offense

A crime that is punishable by death under the legal system.

Model Penal Code

A text designed to stimulate and assist state governments in updating and standardizing their penal laws.

Maximum Penalty

The highest punishment or fine that can be imposed for a particular offense under the law.