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5) A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for
5) A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Activity Cost Pool Budgeted Activity Budgeted Cost Product A Activity 1 87.000 Product B 3,000 Activity 2 2.800 $ 62.000 4,500 5,500 Activity 3 $ 93,000 2.500 5.250 Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69.550 units. What is the approximate overhead cost per unit of Product A under activity-hased costing? A) $3.00 B) $2.00 C) $10.28 D) SI5.00 1) S233 6) A company has two products: A1 and B2. It uses activity based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Activity Cost Pool Activity 1 Activity 2 Activity 3 $ $ Budgeted Cost 48.000 63.000 80,000 Product Al 1.200 2.240 7,200 Budgeted Activity Product B2 4.800 4,760 800 Annual production and sales level of Product Al is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing? A) 58.00 B) $9.00 C) $10.00 D) SI2.00 E) S4.00 7) A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Which of the following statements is true regarding this company's activity rates? A) The activity rate under the activity-based costing system for Activity 2 is $2.00. B) The activity rate under the activity-based costing Systen for Activity 2 is S16.00. C) The activity rate under the activity-based costing system for Activity 2 is $1.50. D) The activity rate under the activity-based costing system for Activity 2 is $19.50. E) The activity fale under the activity-based costing system for Activity 2 is $2.81. 8) A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are sbown in the following table: Budgeted Activity Activity Cost Pool Budgeted Cost Product A Product B Productc Activity 1 S 70.000 6.000 9.000 20.000 Activity 2 S 45,000 7,000 15,000 8,000 Activity 3 S 82.000 2.500 1,000 1,625 How much overheud will be ussigned to Product B using activity-based costing? A) SS6,500 B) $78,000 C) $62.500 D) S197,000 E) S70,000 AUTUS
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