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

question 159

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:

Inductive Type

Refers to sensors or devices operating on the principle of induction, where electric current is generated due to a changing magnetic field, used in various applications including proximity sensors.

Road Speed Sensor

A device that measures the speed of a vehicle and provides data for various controls and functions.

Transmission Bearing Failures

Occurrences where the bearings within a transmission wear out or break, leading to operational issues or failures.

Excess Heat

Unwanted or surplus thermal energy produced in a system, machinery, or electronic device, often requiring dissipation.