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Question Twenty Nine Golden Nugget Inc. makes 2 distinct products and uses an activity-based (ABC) costing system. The relevant cost information for the company is

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Question Twenty Nine Golden Nugget Inc. makes 2 distinct products and uses an activity-based (ABC) costing system. The relevant cost information for the company is as follows: Product A Product B Total u nits produced 100,000 50,000 Number of units per batch Total overhead cost per unit Batch-level Overhead Costs - Total batch level overhead cost: $50,000. - Batch level overhead cost is made up entirely of machine set up costs a The machine set up cost per batch is the same for both Product A and Product B - Allocation base for batch-level overhead costs: number of batches produced Unit-level Overhead Costs 0 Total unit-level overhead costs: $200,000 Total overhead costs: $200,000 + $50,000 = $250,000 The value of 5X i.e., Product A's total overhead cost per unit is closest to: a. $1.80 I}. $2.00 c. $2.20 cl. $1.60 e. $2.53

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