Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 370 units and of Product B is 740 units. There are three activity cost pools, with total cost and activity as follows: The activity rate for Activity 2 is closest to:
A) 43.17
B) 25.06
C) 19.92
D) 11.10

Question

Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 370 units and of Product B is 740 units. There are three activity cost pools, with total cost and activity as follows:  The activity rate for Activity 2 is closest to:
A) 43.17 
B) 25.06 
C) 19.92 
D) 11.10

Quizplus · Accepted Answer

The Answer of Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 370 units and of Product B is 740 units. There are three activity cost pools, with total cost and activity as follows:  The activity rate for Activity 2 is closest to:
A) 43.17 
B) 25.06 
C) 19.92 
D) 11.10

Abel Corporation Uses Activity-Based Costing