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With calculations please and thank you. REVISED HOMEWORK CIHAPTER THREE-SET THREE STUDENT COPY 1 Matt Company uses activity-based costing. The company has two products: A
With calculations please and thank you.
REVISED HOMEWORK CIHAPTER THREE-SET THREE STUDENT COPY 1 Matt Company uses activity-based costing. The company has two products: A and B The annual production and sales of Product A is 8,000 units and of Product B is 6,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows Activity Cost Poo.l Activity 1 Activity 2 Activity 3 Expected Activity Cost $20,000 $37,000 $91,200 Product A 100 800 800 Product B 400 200 3,000 Total 500 1.000 3,800 The cost per unit of Product A under activity-based costing is closest to: A) $2.40. B) $3.90 C) $10.59, D) $6.60. Use the following to answer questions 2-5 Acton Company has two products: A and B. The annual production and sales of Product A is 800 units and of Product B is 500 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.2 direct labor-hours per unit. The total estimated overhead for next period is $92,023. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools-Activity 1, Activity 2, and General Factory with estimated overhead costs and expected activity as follows: Estimatea Overhead Expected Activity Activity Costs Product A Product B Total 600 1,100 Cost Pool Activity1 $14,487 500 Activity 2 General Factory $12.736 240 100 Total $64,800 2,500 500 3,000 340 $92.023 (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.) 2. The predetermined overhead rate under the traditional costing system is closest toStep by Step Solution
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