Abraham Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 1,000 units. There are three activity cost pools, with total costs and activity as follows:
-The activity rate for Activity 2 is closest to:
A)$22.04
B)$117.55
C)$37.97
D)$18.56

Question

Abraham Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 1,000 units. There are three activity cost pools, with total costs and activity as follows: 
-The activity rate for Activity 2 is closest to:
A)$22.04 
B)$117.55 
C)$37.97 
D)$18.56

Quizplus · Accepted Answer

$35,264 F1F1F1S1F1F1F10 1,900 = $18.56

Abraham Company Uses Activity-Based Costing