A company uses activity-based costing to determine the costs of its three products: A, B,...
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A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and cost driver activity for each of the company's three activity cost pools follow. Budgeted Activity of Cost Driver Activity Cost Pools Budgeted cost Product A Product B Product Activity i $103,950 18,600 8,300 4,600 Activity 2 $ 60,950 7,380 13,600 5,600 Activity $ 54,605 1,275 1,000 2,150 Required: Compute the activity rates for each of the company's three activities Activity Expected Costs Expected Activity Driver Activity Rate 1 S 2 3 103.950 60.950 84 805
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