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UbFFect. 33) A c working papers for your computations and solutions ompany has two products: X sis showing budgeted cost and activity for each of
UbFFect. 33) A c working papers for your computations and solutions ompany has two products: X sis showing budgeted cost and activity for each of its three and Y. It uses activity-based costing and has prepared the following showing budgetedad Y. It uses activity-based costing and has prepared the following activity cost poos Budgeted Activity Activity Cost Pool Budgetecd Cost Product X Product Y Activity Activity 2 25,200 36,000 43,200 46,800 $3,600 $4,800 $6,300 44,000 46.800 Activity 3 nnual production and sales level of Product X is 161,100 units, and the annual production and sale roduct Y is 275,200 units. Compute the approximate overhead cost per unit of Product X under activity-based costing. Compute the approximate overhead cost per unit of Product Y under activi 34) Zola Co. has a contribution margin ratio of 40% and would like to determine whether an additional advertising expenditure of $4,000 would increase sales by $8,000. Calculate the increase or decrease in ne income that would result from this change, and comment on whether Zola should purchase the additional advertising
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