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Matt 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
Matt 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 | $30,750 | 180 | 570 | 750 |
Activity 2 | $36,720 | 810 | 210 | 1,020 |
Activity 3 | $117,780 | 900 | 3,630 | 4,530 |
The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.) |
$6.66 per units
$5.26 per units
$2.56 per units
$11.57 per units
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