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jeyben [28]
3 years ago
8

Mabbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A i

s 800 units and of Product B is 600 units. There are three activity cost pools, with estimated costs and expected activity as follows:
Activity Cost Pools Estimated Overhead Cost Expected Activity
Product A Product B Product C
Activity 1 $17460 600 600 1200
Activity 2 $19987 1700 600 2300
Activity 3 $29884 400 120 520

The activity rate for Activity 2 is closest to: __________
a. $29.274
b. $33.311
c. $11.764
d. $8.69
Business
1 answer:
vagabundo [1.1K]3 years ago
7 0

Answer:

d. $8.69

Explanation:

Activity rate for Activity 2 = Estimated Overhead Cost / Expected Activity

Activity rate for Activity 2 = $19,987.00 / 2300

Activity rate for Activity 2 = $8.69 per activity

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