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:

Scenario-Based Analysis

A method of planning that uses hypothetical situations to anticipate potential challenges and devise strategic responses.

Competitive Intelligence

The gathering and analysis of information about competitors, market conditions, and other external factors that influence competitive advantage.

Strategic Indicators

Metrics or measures used to assess the performance or outcome of an organization's strategy.

Key Indicator

A measurable variable used to evaluate the success or progress of an organization's objectives or performance.