A company has two products: A and B. It uses activity-based costing and has prepared the...
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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 of its three activity cost pools: Budgeted Activity Activity Cost Pool Budgeted Cost Product A Product B Activity 1 $87,000 3,000 2,800 Activity 2 $62,000 4,500 5,500 Activity 3 $93,000 2,500 5,250 Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product A under activity-based costing? $2.00 $2.33 $3.00 O $10.28 O$15.00 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 $87,000 3,000 2,800 Activity 2 $62,000 4,500 5,500 Activity 3 $93,000 2,500 5,250 Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product A under activity-based costing? $2.00 $2.33 $3.00 O $10.28 O$15.00
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