Question
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 Budgeted Activity Activity Pool Cost Cost Product A Product B Activity 1 $110,000 2,700 2,300 Activity 2 $108,000 2,300 2,700 Activity 3 $107,000 3,200 1,800 Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 13,393 units. What is the approximate overhead cost per unit of Product B under activity-based costing?(rounded to zero decimal places)
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