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Category > Management Posted 20 Dec 2017 My Price 10.00

estimated total cost and expected activity

Please See files attached below 

 

Anola Company has two products: A and B.

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:

 

 

Activity Cost Pool

Estimated

Cost

Expected Level of Activity Driver

Product A

Product B

Total

Activity 1.........

$18,000

300

200

500

Activity 2.........

$16,000

500

100

600

Activity 3.........

$27,000

600

300

900

 

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

[Remember, if you want to compute an ABC rate you divide total estimated costs for an activity by total estimated cost driver.  If a company has 2 products and the estimated driver (say # of setups) for each is given for each product, you have to add them together for the denominator.  You have one rate for each pool, regardless of the number of products.]

a.

$30.00
b.

$30.50
c.

$90.00
d.

$15.00
e.

$67.78

Attachments:

Answers

CourseLover
(12)
Status NEW Posted 20 Dec 2017 07:12 AM My Price 10.00

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