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

question 77

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:
-Which of the following statements is true regarding this company's activity rates?

• A)The activity rate under the activity-based costing system for Activity 2 is $2.00.
• B)The activity rate under the activity-based costing system for Activity 2 is $16.00.
• C)The activity rate under the activity-based costing system for Activity 2 is $1.50.
• D)The activity rate under the activity-based costing system for Activity 2 is $19.50.
• E)The activity rate under the activity-based costing system for Activity 2 is $2.81.

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