In the second-stage allocation in activity-based costing,activity rates are used to apply costs to products,customers,and other cost objects.

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In the second-stage allocation of ABC, activity rates are calculated by dividing the total cost of each activity by its cost driver. These activity rates are then used to apply overhead costs to products, customers, or other cost objects based on the amount of each activity consumed by the specific cost objects.

In the Second-Stage Allocation in Activity-Based Costing,activity Rates Are Used