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Persimmons Incorporated has two products: G and P. The company uses activity-based costing and has prepared the following analysis showing the total cost and activity
Persimmons Incorporated has two products: G and P. The company uses activity-based costing and has prepared the following analysis showing the total cost and activity for each of its three activity cost pools: The annual production and sales of Product G is 10,640 units. The annual production and sales of Product P is 26,600. The cost per unit of Product P under activity-based costing is closest to:
Select one:
a. $4.00
b. $30.16
c. $10.00
d. $6.88
Activity Total Cost $30,000 $24,000 $80,000 Total Activity Cost Pool Activity 1 Activity 2 Activity3 Product G 200 600 400 Product P 400 900 3,600 600 1,500 4,000Step by Step Solution
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