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 $104,000 4,700 4,500 Activity 2 $79,000 6,200 7,200 Activity 3 $127,000 4,200 6,950 Annual production and sales level of Product A is 36,000 units, and the annual production and sales level of Product B is 71,250 units. What is the approximate overhead cost per unit of Product B under activity-based costing?
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