Nick Company has two products: A and B. The company uses activity-based costing. The total cost and activity for each of the company's three activity cost pools are as follows: The activity rate under the activity-based costing system for Activity 3 is closest to:
A) $525.00
B) $44.65
C) $105.00
D) $205.00

Question

Nick Company has two products: A and B. The company uses activity-based costing. The total cost and activity for each of the company's three activity cost pools are as follows:  The activity rate under the activity-based costing system for Activity 3 is closest to:
A) $525.00 
B) $44.65 
C) $105.00 
D) $205.00

Quizplus · Accepted Answer

Activity 3 activity rate: $52,500 ÷ 500 = $105

Nick Company Has Two Products: a and B