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

question 4

Multiple Choice

A company uses activity-based costing to determine the costs of its three products: A,B,and C.The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:
-What are the activity rates for the three activities under activity-based costing?

• A)(1)$2.00; (2)$3.00; (3)$3.50.
• B)(1)$3.50; (2)$1.50; (3)$32,80.
• C)(1)$3.50; (2)$3.00; (3)$16.00.
• D)(1)$2.00; (2)$1.50; (3)$16.00.
• E)(1)$2.00; (2)$1.50; (3)$32.80.

---

Definitions:

Airline Pilots

Trained professionals who operate aircraft, ensuring safe flight operations from departure to arrival.

Wage Rate

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, made by an employer to an employee.

Productive

The ability to produce a significant amount of output or work in a specific period of time, often using resources efficiently.

MRP Curve

The Marginal Revenue Product curve, which shows the added revenue generated by increasing the employment of an additional unit of a resource, holding other factors constant.