The amount of resources used in an activity-based costing (ABC) system for a specific activity is computed by multiplying the ______________ (chapter 10) A. cost driver rate and the actual cost driver volume B. cost driver rate and the planned cost driver volume C. overhead rate and the actual cost driver volume D. overhead rate and the planned cost driver volume

Respuesta :

Answer: A. cost driver rate and the actual cost driver volume

Explanation:

When using activity-based costing, the cost for an activity is based on the cost driver rate, which is the cost per unit of the activity, and the actual cost driver volume which is how many units was used in the activity.

For instance, if the cost driver rate for marketing is $8 per unit and 50 units were produced - actual cost driver volume- then the cost of marketing would be:

= 8 * 50

= $400

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