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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
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: Activity Cost Pool Budgeted Cost Budgeted Activity Product A Product B Activity 1 $88,000 3,100 2,900 Activity 2 $63,000 4,600 5,600 Activity 3 $95,000 2,600 5,350 Annual production and sales level of Product A is 34,400 units, and the annual production and sales leve of Product B is 69,650 units. What Is the approximate overhead cost per unit of Product A under activity- based costing? Multiple Choice $14.67 $2.03 510.29 $3.06
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