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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
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: Budgeted Activity Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost $88,000 $63,000 $95,000 Product A 3,100 4,600 2,600 Product B 2,900 5,600 5,350 Annual production and sales level of Product A is 34,400 units, and the annual production and sales level of Product B is 69,650 units. What is the approximate overhead cost per unit of Product A under activity-based costing? O $3.05 O $2.03 O $14.67 O $10.29 O $2.26
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