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Arial Company has two products: A and B. The company uses activity-based costing. The total cost and activity for each of the company's three activity cost pools are as follows:

Total Activity
Activity Cost Pool Total Cost Product A Product B Total
Activity 1 $22,000 400 100 500
Activity 2 $16,240 380 200 580
Activity 3 $14,600 500 250 750

The activity rate under the activity-based costing system for Activity 3 is closest to:

a. $70.45
b. $28.87
c. $19.47
d. $58.40
e. $32.5

Sagot :

Kedir2526wolensoidn

Answer:

a

Explanation:

because it approaches to the total rates of the activity 3 it is the best avererage for that activity

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