To allocate overhead costs to the Phone and GPSTo allocate overhead costs to the Phone and GPS, both of these products use multiple choice 2 none of the activity rates described in the video. their own distinct activity rates. the same activity rates. a combination of their own distinct activ...
To allocate overhead costs to the Phone and GPS, both of these products use
multiple choice 2 none of the activity rates described in the video. their own
distinct activity rates. the same activity rates. a combination of their own
distinct activity rates plus some activity rates that are shared by the two
products.
Answer & Explanation
The correct answer is: a combination of their own distinct activity rates plus
some activity rates that are shared by the two products.
Explanation:
1. Activity-Based Costing (ABC):
o In ABC, overhead costs are allocated based on activities that drive
costs rather than a single overhead rate.
2. Distinct Activity Rates:
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