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JAsmine Company uses activity based costing. The company has two products: A and B . The annual production and sales of products A and B
JAsmine Company uses activity based costing. The company has two products: A and B . The annual production and sales of products A and B are 10,000 units and 4,000 units, respectively. There are three activity cost pools, with estimated total cost and expected activity as follows.
ACTIVITY ESTIMATED COST PRODUCT A PRODUCT B TOTAL
ACTIVITY 1 $25,000 150 100 250
ACTIVITY 2 $65,000 800 200 1,000
ACTIVITY 3 $90,000 1,000 2,000 3,000
What is the cost per unit of Product A under activity based costing is? SHOW SOLUTIONS STEP BY STEP.
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