Question
In: Accounting
Jennifer Company has two products: A and B. The company uses activity-based costing
Jennifer Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:
The activity rate under the activity based costing system for Supporting customers is closest to:
Solutions
Expert Solution
The activity rate under supporting customers are
= $ 38.44
Explanation -
Activity rate = Estimated cost ÷ Total expected activity
Estimated cost of supporting activity = $ 34,600
Total expected activity = 600 + 300 = 900
Activity rate =
$ 34,600/900 = $ 38.44 approx.
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