2.
A Plus 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 Activity
Activity Cost Pool
Budgeted Cost
Product A
Product B
Product C
Activity 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
Which of the following statements is true...