Annika company uses activity-based costing. the company has two products: a and b. the annual production and sales of product a is 4,000 units and of product b is 1,000 units. there are three activity cost pools, with estimated total cost and expected activity as follows:
expected activity
activity cost pool estimated costs product a product b total
activity 1 $18,000 700 300 1,000activity 2$24,000500 100 600activity 3 $60,0008004001,200
the cost per unit of product a under activty-based costing is closest to:
answer
a. $20.40
b. $18.15
c. $17.00
d. $10.00
Answers: 2
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