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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 800 units and of Product B is 600 units. There are three activity cost pools, with estimated costs and expected activity as follows:
|
 |
 |
Expected Activity |
||
|
Activity Cost Pool |
Estimated Cost |
Product A |
Product B |
Total |
|
Activity 1 |
$17,460 |
600 |
600 |
1,200 |
|
Activity 2 |
$19,987 |
1,700 |
600 |
2,300 |
|
Activity 3 |
$29,884 |
400 |
120 |
520 |
The activity rate for Activity 2 is closest to:
A) $11.76
B) $8.69
C) $29.27
D) $33.31
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