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Bridget Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,500 units and
Bridget Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,500 units and of Product B is 3,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows:
Expected Activity | ||||
Activity Cost Pool | Estimated Cost | Product A | Product B | Total |
Activity 1 | $10,000 | 420 | 350 | 770 |
Activity 2 | 12,000 | 120 | 420 | 540 |
Activity 3 | 50,000 | 490 | 1,162 | 1,652 |
The cost per unit of Product A under activity-based costing is closest to which of the following?
Multiple Choice
$6.00
$8.63
$15.30
$13.80
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