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Lindsey Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 9,000 units and
Lindsey Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 9,000 units and of Product B is 8,000 units. There are three activity cost pools, with total cost and total activity as follows:
Total Activity | ||||
Activity Cost Pool | Total Cost | Product A | Product B | Total |
Activity 1 | $31,000 | 100 | 520 | 620 |
Activity 2 | $46,287 | 860 | 250 | 1,110 |
Activity 3 | $156,750 | 840 | 3,910 | 4,750 |
|
The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.)
$1.82
$12.61
$7.62
$4.32
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