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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 $ 93,000 3600 3400 Activity 2 $ 68,000 5100 6100 Activity 3 $ 105,000 3100 5850 Annual production and sales level of Product A is 34,900 units, and the annual production and sales level of Product B is 70,150 units. What is the approximate overhead cost per unit of Product A unde activity-based costing? O $1.97 O $13.29 O $10.28 $3.30 $2.15
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