The activity rate for each cost pool
A)Is computed as Total activity driver volume/Total activity cost pool resources.
B)Is similar to the predetermined overhead rate calculation under traditional job order costing.
C)Is computed as part of the last step in the preparation of activity-based costing data.
D)All of these ans choices are correct.

Question

Quizplus · Accepted Answer

The activity rate is similar to the predetermined overhead rate calculation in traditional job order costing, as both involve allocating costs based on a rate derived from dividing total costs by total activity or driver volume.

The Activity Rate for Each Cost Pool