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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 2,700 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 2,700 units and of Product B is 1,500 units. There are three activity cost pools, with estimated costs and expected activity as follows:
Cost pool | Estimated cost | Expected Activity | ||
Product A | Product B | Total | ||
1 | $92,063 | 2,200 | 2,100 | 4,300 |
2 | $116,739 | 3,200 | 1,900 | 5,100 |
3 | $128,186 | 1,080 | 1,060 | 2,140 |
What is the cost per unit of Cost Pool #3?
$104.20 | ||
$22.89 | ||
$21.41 | ||
$59.90 |
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