Question
Pharoah Company produces two products: Standard and Deluxe. The company uses an activity-based costing system. Pharoah produced 8600 units of Standard and 2600 units of
Pharoah Company produces two products: Standard and Deluxe. The company uses an activity-based costing system. Pharoah produced 8600 units of Standard and 2600 units of Deluxe. The company uses two activity cost pools, with estimated total cost and activity as follows:
| Expected Activity | |||||
|---|---|---|---|---|---|
| Activity Cost Pool | Estimated Cost | Standard | Deluxe | ||
| #1 | $12600 | 560 | 310 | ||
| #2 | $24600 | 460 | 1260 | ||
What is the cost per unit of Standard under activity-based costing?
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds
10th Edition
126410068X, 9781264100682
