A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted ActivityActivity Cost PoolBudgeted CostProduct AProduct BProduct CActivity 1$70,000 6,000 9,000 20,000 Activity 2$45,000 7,000 15,000 8,000 Activity 3$82,000 2,500 1,000 1,625 What are the activity rates for the three activities under activity-based costing?
A. (1) $3.50; (2) $3.00; (3) $16.00.
B. (1) $2.00; (2) $1.50; (3) $16.00.
C. (1) $2.00; (2) $3.00; (3) $3.50.
D. (1) $3.50; (2) $1.50; (3) $32,80.
E. (1) $2.00; (2) $1.50; (3) $32.80.
Answer: B
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