The Company has two products: X and Y. 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: Estimated Expected Activity Activity Cost Pool Cost Product X Product Y Total Activity 101 £33,600 100 700 800 Activity 102 £44,000 200 800 1,000 Activity 103 £68,600 500 600 1,100 The activity rate under the activity-based costing system for Activity 103 is closest to: A. 62.36 B. 50.42 C. 114.34 D.132.90
The Company has two products: X and Y. 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: Estimated Expected Activity Activity Cost Pool Cost Product X Product Y Total Activity 101 £33,600 100 700 800 Activity 102 £44,000 200 800 1,000 Activity 103 £68,600 500 600 1,100 The activity rate under the activity-based costing system for Activity 103 is closest to: A. 62.36 B. 50.42 C. 114.34 D.132.90
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter18: Activity-based Costing
Section: Chapter Questions
Problem 8E: Comfort Foods Inc. uses activity-based costing to determine product costs. For each activity listed...
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The Company has two products: X and Y. 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:
| Estimated | Expected Activity | |||
| Activity Cost Pool | Cost | Product X | Product Y | Total |
| Activity 101 | £33,600 | 100 | 700 | 800 |
| Activity 102 | £44,000 | 200 | 800 | 1,000 |
| Activity 103 | £68,600 | 500 | 600 | 1,100 |
The activity rate under the activity-based costing system for Activity 103 is closest to:
A. 62.36
B. 50.42
C. 114.34
D.132.90
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