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

question 59

Essay

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 below. $$\begin{array} { | l | l | r | r | r | } \hline & & { \text { Budgeted Activity } } \\\hline \begin{array} { l } \text { Activity Cost } \\\text { Pool }\end{array} & \begin{array} { l } \text { Budgeted } \\\text { Cost }\end{array} & \text { Product A } & \text { Product B } & \text { Product C } \\\hline \text { Activity 1 } & \$ 425,000 & 1,700 & 680 & 1,870 \\\hline \text { Activity 2 } & \$ 144,900 & 1,890 & 1,575 & 2,835 \\\hline \text { Activity 3 } & \$ 85,000 & 2,400 & 1,000 & 1,600 \\\hline\end{array}$$
Compute the company's activity rates under activity-based costing for each of the three activities.

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Definitions:

Preattentive Process

The subconscious accumulation of information from the environment, which occurs without conscious effort or attention.

Attentive Process

The cognitive function that enables an individual to focus selectively on certain information while ignoring other stimuli.

Current Context

The present state of affairs or the immediate environment and circumstances in which an event or discussion occurs.

Ink Color

The property or characteristic of an ink that defines its visual perception, which can influence cognitive processing in tasks such as the Stroop test.