Question

CH 7 8. Dell Corporation is currently using activity-based costing. Dell sales two products: Laptops and Desktops. Every year Dell sells 500 Laptops and 250 Desktops. Dell uses three activities cost pools to apply costs to each product. The projected costs and projected activity for the products is: Expected Activity Activity Cost Pool Activity A Activity B Activity C Projected Cost $21.450 $16.250 $15,045 Laptops 750 850 85 Desktops 350 400 210 Total 1.100 1.250 295 8A. What is the activity rate for Activity A? A) $19.50 B) $25.30 C) $21.00 D) $17.45 E) None of the above

Answer 1

				Rate
	Activity A	21,450/1100		19.5
	Activity B	16250/1250		13
	Activity c	15045/295		51
	Laptops
	(19.5*750+13*850+51*85)/500
	60.02	per unit
	Desktops
	(19.5*350+13*400+51*210)/250
	90.94	per unit
	Answers)
	8A)	option A
		19.5
	8B)	option c
		90.94
	8C)	option D
		60.02