Question
CASTCO has two products: X1 and Z2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of
CASTCO has two products: X1 and Z2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:
Activity Cost Pool Budgeted Cost Budgeted Activity
Product X1 Product Z2
Activity 1 $48,000 1,200 4,800
Activity 2 $63,000 2,240 4,760
Activity 3 $80,000 7,200 800
Annual production and sales level of Product X1 is 8,480 units, and the annual production and sales level of product Z2 is 22,310 units. What is the approximate overhead cost per unit of Product Z2 under activity-based costing?
Group of answer choices
$8.00
$10.00
$9.00
$12.00
$4.00
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