Library resources company employs activity-based costing

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Library Resources Company uses activity-based costing. The company produces soft and hard-cover books. The estimated costs and expected activity for each of the activity pools follow:

Activity

Estimated

Expected Activity

 

Cost Pool

Cost

Hard-Cover

Soft-Cover

Total

Activity 1

$15,675

800

300

1,100

Activity 2

$11,900

500

200

700

Activity 3

$36,000

800

400

1,200

To which of the following is the rate for activity 3 that will used to apply costs to Soft-cover books closest?

a) $90.00

b) $12,000

c) $30.00

d) Not enough information is provided.

Reference no: EM13478009

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