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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 Budgeted Cost Product A Product B Activity 1 Activity 2 $105,000 4,800 4,600 Activity 3 $ 80,000 $129,000 6,300 7,300 4,300 7,050 Annual production and sales level of Product A is 36,100 units, and the annual production and sales level of Product B is 71,350 units. What is the approximate overhead cost per unit of Product B under activity-based costing? Multiple Choice $2.45 $10.26 $11.17 $3.87
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