Business, 28.06.2021 15:50 johajackson2014
Mabbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 800 units and of Product B is 600 units. There are three activity cost pools, with estimated costs and expected activity as follows:
Activity Cost Pools Estimated Overhead Cost Expected Activity
Product A Product B Product C
Activity 1 $17460 600 600 1200
Activity 2 $19987 1700 600 2300
Activity 3 $29884 400 120 520
The activity rate for Activity 2 is closest to:
a. $29.274
b. $33.311
c. $11.764
d. $8.69
Answers: 2
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Mabbe Company uses activity-based costing. The company has two products: A and B. The annual product...
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