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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 are 8,000 units and
- Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A are 8,000 units and of Product, B is 6,000 units. There are three activity cost pools, with the total cost and total activity as follows:
Activity Cost Pool Total Cost Total Activity Product A Product B Total Activity 1 $20,000 100 400 500 Activity 2 $37,000 800 200 1,000 Activity 3 $91,200 800 3,000 3,800
Calculate cost per unit of Product A using activity-based costing
| Activity Cost Pool | Total Cost | Total Activity | ||
| Product A | Product B | Total | ||
| Activity 1 | $20,000 | 100 | 400 | 500 |
| Activity 2 | $37,000 | 800 | 200 | 1,000 |
| Activity 3 | $91,200 | 800 | 3,000 | 3,800 |
Calculate cost per unit of Product A using activity-based costing
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408093887
