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Solving for Activity Rate using ABC 1 A company uses activity-based costing to determine the...

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Accounting

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Solving for Activity Rate using ABC 1 A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table. What is the activity rate under the activity-based costing system for Activity 2? Budgeted Activity for Activities 1, 2, & 3 Activity Budgeted Product A Product B Product C Cost Pool Cost Activity 1 $70,000 6,000 9,000 20,000 Activity 2 $45,000 7,000 15,000 8,000 Activity 3 $82,000 2,500 1,000 1,625

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