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

question 19

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.

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Definitions:

Quarterly Revenue

The total amount of income generated by a company during a three-month period, typically used to assess financial performance.

Bar Graph

A visual representation of data that uses bars of varying heights to show the values of different categories.

Line Graph

A type of chart used to display information as a series of data points connected by straight line segments.

Component Bar Graphs

A type of bar graph in which each bar is divided into multiple segments or components, representing different parts of the total for easy comparison and analysis.