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A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each
A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: 25 Activity Cost Pool Activity 1 Activity 2 Activity 3 10 points Budgeted Activity Product Al Product B2 1,900 5,500 2,940 5,460 7,900 1,500 Budgeted Cost $55,000 $70,000 $94,000 8 03:22:45 Annual production and sales level of Product A1 is 9,180 units, and the annual production and sales level of Product B2 is 23,010 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing? eBook Multiple Choice Ask $7.43 O $8.33 O $12.81 O $10.00 O o $4.41 A firm expects to sell 25,200 units of its product at $11.20 per unit and to incur variable costs per unit of $6.20. Total fixed costs are $72,000. The pretax net income is: 26 Multiple Choice 10 points 03:22:36 $54.000. O eBook O $228,240. Ask $126,000. O O $156,240 O $72,000. Use the following information to determine the break-even point in units (rounded to the nearest whole unit): 27 10 points Unit sales Unit selling price Unit variable cost Fixed costs 41,000 Units $ 15.45 $ 9.40 $177,000 8 03:22:30 Multiple Choice eBook Ask 29,256 O 18,830 7123 O 11,456 O O 26,388
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