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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 10,000 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 10,000 units and of Product B is 7,500 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 | $25,200 | 130 | 430 | 560 |
Activity 2 | $39,960 | 820 | 290 | 1,110 |
Activity 3 | $145,215 | 820 | 3,790 | 4,610 |
The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.) |
$16.07 | |
$2.02 | |
$6.12 | |
$2.22 |
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