Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 6,500 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 | $36,260 | 250 | 490 | 740 |
Activity 2 | $48,037 | 880 | 330 | 1,210 |
Activity 3 | $120,450 | 850 | 3,530 | 4,380 |
The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.) |
$3.94 per units
$4.54 per units
$7.84 per units
$14.33 per units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started