Question
Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,200 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 2,200 units and of Product B is 1,250 units. There are three activity cost pools, with estimated costs and expected activity as follows: Activity Cost Pools Estimated Overhead Cost Expected Activity Product A Product B Total Activity 1 $ 66,033 1,700 1,600 3,300 Activity 2 $ 88,929 2,700 1,400 4,100 Activity 3 $ 102,486 880 860 1,740 The overhead cost per unit of Product B is closest to: (Round your intermediate calculations to 2 decimal places.)
Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2.200 units and of Product B is 1,250 units. There are three activity cost pools, with estimated costs and expected activity as follows: Expected Activity Activity Cost Pools Activity i Activity 2 Activity 3 Estimated Overhead Cost $ 66,033 $ 88,929 $ 102,486 Product A Product B 1,700 1,600 2,700 1,400 880 860 Total 3,300 4,100 1,740 The overhead cost per unit of Product B is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $34.25 O $27.57 $90.43 $64.96Step by Step Solution
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