Homework Answers
| Budgeted activity of cost drivers | ||||||
| Activity cost pool | Budgeted cost (i) | Product A | Product B | Product C | Total budgeted activity (ii) | Activity rate (i)/(ii) |
| Activity 1 | $140,000 | 20,000 | 9,000 | 6,000 | 35,000 | 140,000/35,000 = $4 per activity |
| Activity 2 | $90,000 | 8,000 | 15,000 | 7,000 | 30,000 | 90,000/30,000 = $3 per activity |
| Activity 3 | $82,000 | 1,625 | 1,000 | 2,500 | 5,125 | 82,000/5,125 = $16 per activity |
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