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Shanghl Company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each
Shanghl Company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Budgeted Activity Activity Cost Budgeted Pool Cost Product A Product B Activity 1 $ 107,000 5,000 4,800 Activity 2 $ 82,000 6,500 7,500 Activity 3 $133,000 4,500 7,250 D Annual production and sales level of Product A is 36,300 units, and the annual production and sales level of Product B is 71,550 units. What is the approximate overhead cost per unit of Product Bunder activity-based costing? Multiple Choice $3.96 $10.92 $2.49
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