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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 $ 92,000 $ 67,000 $ 103,000 Budgeted activity Product A Product B 3,500 3,300 5,000 6,000 3,000 5,750 Annual production and sales level of Product A is 34,800 units, and the annual production and sales level of Product B is 70,050 units. What is the approximate overhead cost per unit of Product A under activity- based costing? Multiple Choice $3.25 $2.13 $13.53 0 0 0 0 0 $2.02 $10.28
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