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Need help in working out this problem please Lindsy Company uses activity based costing. The company has two products: A and B. The annual production
Need help in working out this problem please Lindsy Company uses activity based costing. The company has two products: A and B. The annual production and sales of Product A is 5000 and of Product B is 2000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: Activity Cost Pool Estimated Cost Expected Activity A Expected Activity B Total Act 1 24000 200 800 1000 Act 2 36900 750 150 900 Act 3 63000 1000 800 1800 The cost per unit of product A under activity based costing is closes to A 14.11 B. 13.77 C. 7 D 17.70
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