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 activities:
| Activity | Budgeted Cost | Activity Cost Driver | Budgeted Activity | |
|---|---|---|---|---|
| Product A | Product B | |||
| Activity 1 | $ 93,000 | Square feet | 3,600 | 3,400 |
| Activity 2 | $ 68,000 | Units produced | 5,100 | 6,100 |
| Activity 3 | $ 105,000 | Setups | 3,100 | 5,850 |
Annual production and sales level of Product A is 34,900 units, and the annual production and sales level of Product B is 70,150 units. What is the approximate overhead cost per unit of Product B under activity-based costing?
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Software Licence Compliance Survive The Audits
Authors: R. Concessao
1st Edition
1539161560, 978-1539161561
