A company uses activity-based costing to determine the costs of its three products: A, B, and C. The activity rates and activity levels for each of the company's three activity cost pools are shown below.??Budgeted ActivityActivity Cost PoolActivity RateProduct AProduct BProduct CActivity 1$197001,150650Activity 2$272,4002,1001,500Activity 3$626001,3501,050Compute the company's budgeted cost for each of the three activities under activity-based costing.
What will be an ideal response?
Budgeted Activity
| Activity Cost Pool | Activity Rate | Product A | Product B | Product C | Total | Budgeted Cost (total activity × activity rate) |
| Activity 1 | $19 | 700 | 1,150 | 650 | 2,500 | 2,500 × $19 = $47,500 |
| Activity 2 | $27 | 2,400 | 2,100 | 1,500 | 6,000 | 6,000 × $27 = $162,000 |
| Activity 3 | $62 | 600 | 1,350 | 1,050 | 3,000 | 3,000 × $62 = $186,000 |
You might also like to view...
The FBI's Document Conversion Lab does NOT do which of the following?
a. It saves an incredible amount of time searching documents. b. It increases search capabilities regarding relevant documents. c. It increases the amount of documentation evidence available. d. It enables the sharing of document information.
A salesclerk at Sparkle Jewelry Store observed a customer remove a ring from a display case and put it in his pocket. In most states, Sparkle A)can reasonably detain the customer for suspicion of shoplifting
B)cannot detain the customer but can alert the police. C)cannot detain the customer but once the customer leaves the store, the salesclerk can make a citizen's arrest. D)cannot detain the customer but can sue for conversion.
PSE&G is a utility company. One of its service guarantees is to keep all appointments. If PSE&G fails to keep an appointment mutually agreed upon by the customer and the company, PSE&G will credit residential customers' accounts by $25 and business customers' accounts by $100. The guarantee only applies to appointments for meter readings, account investigation, gas service, gas appliance repair and both electric and gas meter work scheduled three days in advance. Which of the following statements about PSE&G's service guarantee is FALSE?
A. PSE&G's guarantee is easy to invoke B. PSE&G's guarantee is easy to understand and communicate C. PSE&G's guarantee is unconditional D. PSE&G's guarantee is qualitative E. PSE&G's guarantee is meaningful
Foreign keys link the related records between parent and child tables
Indicate whether the statement is true or false