Activity rates in activity-based costing are computed by dividing costs from the first-stage cost assignments by the activity measure for each activity cost pool.

Name: Activity rates in activity-based costing are computed by dividing costs from the first-stage cost assignments by the activity measure for each activity cost pool.
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Question

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This is correct. Activity rates are computed by dividing costs from the first-stage cost assignments by the activity measure for each activity cost pool.

Activity Rates in Activity-Based Costing Are Computed by Dividing Costs