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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: Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost $87,000 $62,000 $93,000 Budgeted Activity Product Product B 3,000 2,800 4,500 5,500 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? Multiple Choice $2.00 O $233 $2.33 $10.28 O $15.00 $3.00
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