Which of the following is the formula for calculating the activity rate in an activity-based costing system?
A)Activity cost pool resources divided by total activity driver volume
B)Activity driver divided by activity cost pool resources
C)Activity cost pool resources divided by estimated total cost pool volume
D)Estimated cost pool driver volume divided by activity cost pool resources

Question

Quizplus · Accepted Answer

In an activity-based costing system, the activity rate is calculated by dividing the total resources allocated to an activity cost pool by the total volume of the activity driver in that pool. Therefore, option A is the correct formula.

Which of the Following Is the Formula for Calculating the Activity