question archive Abel Corporation uses activity-based costing

Abel Corporation uses activity-based costing

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Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A are 370 units and Product B is 740 units. There are three activity cost pools, with total cost and activity as follows:

 

   Total ActivityActivity Cost PoolsTotal CostProduct AProduct BTotalActivity 1$23,2059001501,050Activity 2$38,8501,9501,5503,500Activity 3$10,598145245390

 

The activity rate for Activity 2 is closest to:

Multiple Choice

  • 43.17
  • 25.06
  • 19.92
  • 11.10

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