Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 340 units and of Product B is 680 units. There are three activity cost pools, with total cost and activity as follows: Total Activity Activity Cost Pools Total Cost Product A Product B Total Activity 1 $ 24,860 750 350 1,100 Activity 2 $ 35,040 1,800 1,400 3,200 Activity 3 $ 10,445 130 230 360 The activity rate for Activity 2 is closest to.

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.