Question
a. Latif Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the
a. Latif Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:
Required:
- Compute POHR per activity (Round off to two decimal places)
- Calculate the overhead cost per unit, if the company produces 1,000 units of product A and 500 units of product B. (6 MARKS)
Activities Product design.. Assembling....... Supporting customers........ Estimated Overhead Cost Product A $17,600 $12,000 $26,000 Expected Activity Product B 800 500 800 300 200 400 Total 1,100 700 1,200
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Cornerstones of Managerial Accounting
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