Question
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 | Budgeted Cost | Product A | Product B | ||||||
| Activity 1 | $ | 89,000 | 3,200 | 3,000 | |||||
| Activity 2 | $ | 64,000 | 4,700 | 5,700 | |||||
| Activity 3 | $ | 97,000 | 2,700 | 5,450 | |||||
Annual production and sales level of Product A is 34,500 units, and the annual production and sales level of Product B is 69,750 units. What is the approximate overhead cost per unit of Product B under activity-based costing?
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A Comprehensive Guide To Information Security Management And Audit
Authors: Rajkumar Banoth, Gugulothu Narsimha, Aruna Kranthi Godishala
1st Edition
1032344431, 978-1032344430
