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

question 148

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.
$$\begin{array} { | l | c | r | r | r | } \hline & & { \text { Budgeted Activity } } \\\hline \begin{array} { l } \text { Activity Cost } \\\text { Pool }\end{array} & \text { Activity Rate } & \text { Product A } & \text { Product B } & \text { Product C } \\\hline \text { Activity 1 } & \$ 19 & 700 & 1,150 & 650 \\\hline \text { Activity 2 } & \$ 27 & 2,400 & 2,100 & 1,500 \\\hline \text { Activity 3 } & \$ 62 & 600 & 1,350 & 1,050 \\\hline\end{array}$$
Compute the company's budgeted cost for each of the three activities under activity-based costing.

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Definitions:

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The rivalry among companies and countries around the world to attract customers, resources, and high-quality talent.

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Physically Demanding Tasks

Tasks or activities that require significant physical effort, often involving strength, stamina, or coordination.