Question
Abel Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A are 200 units and
Abel Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A are 200 units and of Product B are 400 units. There are three activity cost pools, with estimated costs and expected activity as follows:
Activity | Expected Activity | |||
Cost Pool | Estimated Cost | Product A | Product B | Total |
Activity 1 | $16,660 | 600 | 100 | 700 |
Activity 2 | $18,450 | 1,100 | 700 | 1,800 |
Activity 3 | $9,731 | 60 | 160 | 220 |
The overhead cost per unit of Product B is closest to:
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Accounting Principles Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
8th Canadian Edition
111950242X, 1-119-50242-5, 978-1119502425
