Accola Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,100 units and of Product B is 700 units. There are three activity cost pools, with estimated costs and expected activity as follows:

-The activity rate for Activity 3 is closest to:
A) $119.72
B) $116.18
C) $26.67
D) $56.74

Question

Accola Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,100 units and of Product B is 700 units. There are three activity cost pools, with estimated costs and expected activity as follows:

-The activity rate for Activity 3 is closest to:

-The activity rate for Activity 3 is closest to:
A) $119.72 
B) $116.18 
C) $26.67 
D) $56.74

Quizplus · Accepted Answer

The Answer of  Accola Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,100 units and of Product B is 700 units. There are three activity cost pools, with estimated costs and expected activity as follows:

-The activity rate for Activity 3 is closest to:
A) $119.72 
B) $116.18 
C) $26.67 
D) $56.74

Accola Company Uses Activity-Based Costing