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 acivity cot pools.
| Cost Pool | Budgeted Cost | Product A | Product B |
| Activity 1 | $87,000 | 3,000 | 2,800 |
| Activity 2 | $62,000 | 4,500 | 5,500 |
| Activity 3 | $93,000 | 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?
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Auditing Principles And Practice
Authors: Kumar And Sharma
3rd Edition
8120350987, 9788120350984
