Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 | $ | 102,000 | 4,500 | 4,300 | |||||
Activity 2 | $ | 77,000 | 6,000 | 7,000 | |||||
Activity 3 | $ | 123,000 | 4,000 | 6,750 | |||||
Annual production and sales level of Product A is 35,800 units, and the annual production and sales level of Product B is 71,050 units. What is the approximate overhead cost per unit of Product A under activity-based costing?
Multiple Choice
-
$3.73
-
$1.56
-
$2.37
-
$10.27
-
$11.59
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started