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What the estimated activity rate for activity two is closest

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Reference no: EM132501261

Paulson Company has exactly two products: Yeti and Zeta. The company uses activity-based costing. Estimated costs for the activity cost pools are as follows:

Cost Pool Estimated Cost Activity Measure Level for Yeti Activity Measure Level for Zeta

Activity 1 $12,000 100 units 150 units

Activity 2 $24,800 200 units 125 units

Activity 3 $42,000 300 units 125 units

Question 1: The estimated activity rate for activity 2 is closest to:

Group of answer choices

Option 1: $76.31 per unit

Option 2: $198.40 per unit

Option 3: $78.80 per unit

Option 4: $124.00 per unit

Reference no: EM132501261

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