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

question 153

Essay

A company uses activity-based costing to determine the costs of its three products: A, B, and C.The activity rates and activity levels for each of the company's three activity cost pools are shown below.
$\begin{array}{r}{\text { Budgeted Activity }} \quad \quad \quad \quad \quad \quad \\\begin{array}{|l|r|r|r|r|}\hline \begin{array}{l}\text { Activity Cost } \\\text { Pool }\end{array} & \text { Activity Rate } & \text { Product A } & \text { Product B } & \text { Product C } \\\hline \text { Activity 1 } & \$ 19 & 700 & 1,150 & 650 \\\hline \text { Activity 2 } & \$ 27 & 2,400 & 2,100 & 1,500 \\\hline \text { Activity 3 } & \$ 62 & 600 & 1,350 & 1,050\\\hline\end{array}\end{array}$ Compute the company's budgeted cost for each of the three activities under activity-based costing.

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