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Perry Manufacturing Company Produces Two Products: Standard and Deluxe What Is the Activity Rate for Activity 2?
A)$42

Question 24

Multiple Choice

Perry Manufacturing Company produces two products: Standard and Deluxe.Perry uses the activity-based costing method.The estimated cost and activity for these products are as follows:  Estimated Cost  Expected Activity  Standard  Deluxe  Total  Activity 1 $25,000200300500 Activity 2 $32,000400200600 Activity 3 $20,000300400700 Total $77,0009009001,800\begin{array}{llccr} &\text { Estimated Cost }&&\text { Expected Activity }\\& & \text { Standard } & \text { Deluxe } & \text { Total } \\\text { Activity 1 } & \$ 25,000 & 200 & 300 & 500 \\\text { Activity 2 } & \$ 32,000 & 400 & 200 & 600 \\\text { Activity 3 } & \$ 20,000 & 300 & 400 & 700 \\\text { Total } & \$ 77,000 & \mathbf{9 0 0} & \mathbf{9 0 0} & \mathbf{1 , 8 0 0}\end{array} What is the activity rate for activity 2?


A) $42.78
B) $17.78
C) $80.00
D) $160.00
E) $53.33

Correct Answer:

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