Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Paul company has two pro..accounting question

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:
Expected activity cost
Activity Estimated cost Product A Product B Total
Activity1 $22,000
400
100
500
Activity2 $16,240
380
200
580
Activity3 $14,600
500
250
750
The activity rate under the activity-based costing system for Activity 3 is closest
to:
- $70.45.
- $28.87.
- $19.47.
-$58.40.
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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: Expected activity cost Activity Estimated cost Product A Product B Total Activity1 $22,000 400 100 500 Activity2 $16,240 380 200 580 Activity3 $14,600 500 250 750 The activity rate under the activity-based costing system for Activity 3 is closest to: - $70.45. - $28.87. - $19.47. -$58.40.
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