Paul Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Activity Cost Pool Activity 1 Activity 2 Activity 3 a. $28.87 b. $19.47 O c. $58.40 Estimated Cost d. $70.45 $22,000 16,240 14,600 Expected Activity Product B Product A 400 380 500 The activity rate under the activity-based costing system for Activity 3 is closest to which of the following? 100 200 250 Total 500 580 750

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 14E: Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving...
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Paul Company has two products: A and B. The company uses activity-based costing.
The estimated total cost and expected activity for each of the company's three
activity cost pools are as follows:
Activity Cost
Pool
Activity 1
Activity 2
Activity 3
Estimated
Cost
a. $28.87
O b. $19.47
C. $58.40
O d. $70.45
$22,000
16,240
14,600
Expected Activity
Product B
Product A
400
380
500
100
200
250
Total
500
580
750
The activity rate under the activity-based costing system for Activity 3 is closest to
which of the following?
Transcribed Image Text:Paul Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Activity Cost Pool Activity 1 Activity 2 Activity 3 Estimated Cost a. $28.87 O b. $19.47 C. $58.40 O d. $70.45 $22,000 16,240 14,600 Expected Activity Product B Product A 400 380 500 100 200 250 Total 500 580 750 The activity rate under the activity-based costing system for Activity 3 is closest to which of the following?
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