Question
Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 5,000 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 5,000 units and of Product B is 7,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: Expected Activity Activity Cost Pool Estimated Cost Product A Product B Total Activity 1 $24,000 200 400 600 Activity 2 36,000 700 200 900 Activity 3 81,200 800 3,000 3,800 The cost per unit of Product B under activity-based costing is closest to which of the following? Multiple Choice $12.59 $16.45 $13.50 $15.60
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