Question
Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 200
Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 200 units and of Product B is 400 units. There are three activity cost pools, with total cost and activity as follows:
| Total Activity | ||||||
| Activity Cost Pools | Total 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 cost per unit of Product B is closest to:
Multiple Choice
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$41.58
-
$81.53
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$74.73
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$17.69
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Financial Accounting The Cornerstone Of Business Decision Making
Authors: Jay S Rich, Jeff Jones, Linda Ann Myers
5th Edition
0357132696, 978-0357132692
