Business, 18.08.2020 17:01 mechelllcross

A 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: Activity Cost Pool Budgeted Cost Product A Product B
Activity 1 $87,000 3,000 2,800
Activity 2 $62,000 4,500 5,500
Activity 3 $93,000 2,500 5,250

Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product A under activity-based costing?

a. $3.00
b. $2.00
c. $10.28
d. $15.00
e. $2.33

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A company has two products: A and B. It uses activity-based costing and has prepared the following a...

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