Question

Activity rates are determined by

• a. dividing the actual cost for each activity pool by the estimated activity base for that pool.
• b. dividing the cost budgeted for each activity pool by the actual activity base in that pool.
• c. dividing the cost budgeted for each activity pool by the estimated activity base for that pool.
• d. dividing the actual cost for each activity pool by the actual activity base for that pool.

Answer 1

c. dividing the cost budgeted for each activity pool by the estimated activity base for that pool