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Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 800 units and
Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 800 units and of Product B is 600 units. There are three activity cost pools, with estimated costs and expected activity as follows: Estimated Activity Cost Pools Overhead Cost Expected Activity Product A Product B Totale Activity 1e Activity 2* Activity 3 $17460 $ 19987 $ 29884 600 1,700 400 600 1,200 600 2,300 120 520 1. The activity rate for Activity 2 is closest to: Select one: A. $29.27 B. $33.31 C. $11.76 D. $8.69- 2. The overhead cost per unit of Product B is closest to: (Round your intermediate calculations to 2 decimal places.) Select one: A. $34.73 B. $11.49 C. $25.90 D. $48.09
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