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West Company manufactures three types of boats. West Company uses activity-based costing to determine the...

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Accounting

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West Company manufactures three types of boats. West 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 West Company's three activity cost pools are shown in the following table: Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost $74,000 $49,000 $90,000 Budgeted Activity Product A Product B Product C 6,400 9,400 20,400 7,400 15,400 8,400 2,900 1,400 2,025 Which of the following statements is true regarding West Company's activity rates? Multiple Choice The activity rate under the activity based costing system for Activity 2 is $2.04 The activity rate under the activity-based costing system for Activity 2 is $17.84. The activity rate under the activity-based costing system for Activity 2 is $14.23 The activity rate under the activity based costing system for Activity 2 is $2.97 Next > 14 of 24 14 of 24

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