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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Nick 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:
Expected Activity
Activity Cost Pool Estimated Costs Product A Product B Total
Activity 1 $32,600 700 300 1,000Activity 2$17,600600 200 800Activity 3 $52,500 400100500
The activity rate under the activity-based costing system for Activity 3 is closest to:
Answer
| Â | a. | $44.65 |
| Â | b. | $105.00 |
| Â | c. | $525.00 |
| Â | d. | $205.00 |
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