Question
Chibucos Company has two products: A and B. The annual production and sales level of Product A is 9,094 units. The annual production and sales
- Chibucos Company has two products: A and B. The annual production and sales level of Product A is 9,094 units. The annual production and sales level of Product B is 15,826. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools.
Activity
Car Pool
Estimated
Overhead Cost
Expected Activity
Total
Product A
Product B
# 1
$ 29.200
1.000
500
1,500
# 2
$ 40,000
200
800
1,000
# 3
$180,000
600
5,400
6,000
| Activity Car Pool | Estimated Overhead Cost | Expected Activity | Total | |
Product A | Product B | |||
# 1 | $ 29.200 | 1.000 | 500 | 1,500 |
# 2 | $ 40,000 | 200 | 800 | 1,000 |
# 3 | $180,000 | 600 | 5,400 | 6,000 |
The overhead cost per unit of Product A under activity-based costing is closest to:
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
7th Edition
0137858515, 9780137858514
