Monson Corporation has two products: G and P.The company uses activity-based costing and has prepared the following analysis showing the total cost and activity for each of its three activity cost pools: The annual production and sales of Product G is 10, 640 units.The annual production and sales of Product P is 26, 600. The activity rate under the activity-based costing system for Activity 2 is closest to:

Question

Monson Corporation has two products: G and P.The company uses activity-based costing and has prepared the following analysis showing the total cost and activity for each of its three activity cost pools:  The annual production and sales of Product G is 10, 640 units.The annual production and sales of Product P is 26, 600. The activity rate under the activity-based costing system for Activity 2 is closest to:

Quizplus · Accepted Answer

The activity rates are computed as follows:
 11eaa0c8_9589_ca4b_9cb2_89b1455a200c_TB2487_00

Monson Corporation Has Two Products: G and P