A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and cost driver activity for each of the company's three activity cost pools follow.
Activity Cost Pool Budgeted Cost Budgeted Activity
Product A Product B Product C
Activity 1 $134,550 19,800 8,900 5,800
Activity 2 $85,550 7,900 14,800 6,800
Activity 3 $79,395 1,575 1,000 2,450
Required:
Compute the activity rates for each of the company's three activities.