Question
sparks company produces and distributes two types of garden sculptures, Plain and Fancy. Budgeted cost and activity for each of its three activity cost pools
sparks company produces and distributes two types of garden sculptures, Plain and Fancy. Budgeted cost and activity for each of its three activity cost pools are shown below. They company plans to produce and sell 64,000 plain units and 49,150 fancy units.
Activity cost pool Budgeted cost Budgeted activity - Plain Budgeted activity - Fancy
Packaging $360,000 70,000 finished units 130,000 finished units
Material handling $262,500 140,000 total parts 210,000 total parts
Production setups $125,000 5 total setups 20 total setups
Compute the approximate overhead cost per unit of the Plain under activity-based costing
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