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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 activities: Budgeted Activity Activity Budgeted Cost Activity Cost Driver Product A Product B Activity i $ 87,000 Square feet 3,000 2,800 Activity 2 $ 62,000 Units produced 4,500 5,500 Activity 3 $ 93,000 Setups 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 Bunder activity-based costing? Multiple Choice $3.00 $2.00
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