A company uses activity-based costing to determine the costs of its two products: A and...
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Accounting
A company uses activity-based costing to determine the costs of its two products: A and B. The budgeted cost and activity for each of the company's three activity cost pools follow:
Cost Pool
Budgeted Cost
Product A
Product B
Total
Activity 1
$19,800
800
300
1,100
Activity 2
$16,000
2,200
1,800
4,000
Activity 3
$14,000
400
300
700
What is the activity rate under the activity-based costing method for Activity 3?
Group of answer choices
a. $4.00
b. $8.59
c. $18.00
d. $20.00
Answer & Explanation
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