A company uses activity-based costing to determine the, Ask an Expert

Accounting

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.

			Budgeted Activity
Activity Cost Pool	Budgeted Cost	Product A	Product B	Product C
Activity 1	$104,720	6,800	9,800	20,800
Activity 2	$74,520	7,800	15,800	8,800
Activity 3	$126,000	3,300	1,800	2,400

Which of the following statements is true regarding this company's activity rates?

	The activity rate under the activity-based costing system for Activity 2 is $2.80.
	The activity rate under the activity-based costing system for Activity 2 is $16.80.
	The activity rate under the activity-based costing system for Activity 2 is $2.30.
	The activity rate under the activity-based costing system for Activity 2 is $21.90.
	The activity rate under the activity-based costing system for Activity 2 is $3.95.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9957234

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - ralph henwood was paid a salary of 64600 during

Question - Ralph Henwood was paid a salary of $64,600 during 2018 by Odesto Company. In addition, during the year Henwood started his own business as a public accountant and reported a net business income of $70,000 on h ...

Question - describe the allocation of inventoriable costs

Question - Describe the allocation of inventoriable costs may be made under any of the following assumptions as to the flow of costs (a) first-in, first-out (FIFO), (b) last-in, first-out (LIFO), or (c) average cost.

Question - at the beginning of the year management had

Question - At the beginning of the year, management had estimated that total manufacturing overhead would be $591,360 and had planned to apply overhead to jobs based on an estimated use 42,240 of machine hours. The actua ...

Question for this weeks discussion research the most common

Question: For this week's Discussion, research the most common threats to a computerized accounting system using the Internet and/or Strayer databases. Be prepared to discuss. 1. Upon examination of the greatest threats ...

Question - below are three independent situationsa in

Question - Below are three independent situations. a. In August, 2018 a worker was injured in the factory in an accident partially the result of his own negligence. The worker has sued Wesley Co. for $800,000. Counsel be ...

Question - if a company purchases land for 1000000 paying

Question - If a company purchases land for $1,000,000, paying $400,000 cash and borrowing the remainder with a long term note payable. Please give explanation for understanding on how this transaction be reported on a st ...

Question you plan to be open 50 hours per week for 20 weeks

Question: You plan to be open 50 hours per week for 20 weeks in the year. You therefore anticipate operating costs of $100,000 per year. You would be able to borrow $1,700,000 you need to get started under a 20-year loan ...

Questions -q1 tom is employed by aa ltd in the usa which is

Questions - Q1. Tom is employed by AA Ltd in the USA which is the parent company located in Los Angelos. Tom was transferred on the 30th of December 2017 to the subsidiary company in Brunswick Melbourne Victoria. AA Ltd ...

Question - marvin services corporation had the following

Question - Marvin Services Corporation had the following accounts and balances: Accounts payable $12,000 Equipment $14,000Accounts receivable 2,000 Land14,000 Buildings? Unearned service revenue 4,000 Cash 6,000 Total st ...

Question using the financial statements distributed in

Question: Using the Financial Statements distributed in Class and attached to this file folder, please complete a Statement of Cash Flow and a Free Cash Flow Analysis for 2017. Also, prepare an Additional Funds Needed (C ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert