Paul Company Has Two Products: a AndB The Activity Rate Under the Activity-Based Costing System for Activity

question 32

Multiple Choice

Paul Company has two products: A andB. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: $\begin{array}{lrr}&\text { Estimated}& \text {Expected Activity }\\\text { Activity CostPool }&\text { Cost }& \text {ProductA}&\text { Product B}&\text { Total }\\ \text {Activity 1 } &£ 22,000&400 &100 &500\\\\ \text { Activity 2. } &£ 16,240& 380& 200 &580\\\\ \text { Activity 3 } &£14,600& 500 &250 & 750\\\end{array}$

The activity rate under the activity-based costing system for Activity 3 is closest to

• A)£70.45.
• B)£28.87.
• C)£19.47.
• D)£58.40.

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Definitions:

Multichannel Strategy

A marketing approach that combines various communication channels, such as retail stores, online, and mobile apps, to provide a seamless customer experience and broaden market reach.

Supercenters

Large retail stores that combine a supermarket and a department store, offering a wide range of products including groceries, clothing, and household goods under one roof.

Square Feet

A unit of area measurement used primarily in the United States, equal to a square that is one foot on each side. It is commonly used to measure real estate.

Omnichannel Retailers

are businesses that use a multichannel approach to sales, aiming to provide customers with a seamless shopping experience whether they are shopping online from a desktop or mobile device, by telephone, or in a brick-and-mortar store.