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 | $140,000 | 3,600 | 2,400 |
| Activity 2 | $120,000 | 4,000 | 6,000 |
| Activity 3 | $124,000 | 3,200 | 4,800 |
Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 15,569 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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Financial Sector Reform And Privatization In Transition Economies
Authors: John Doukas, Victor Murinde, Clas Wihlborg
1st Edition
044482653X, 9780444826534
