Business, 29.12.2020 23:40 coollid876
A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:
Budgeted Activity
Activity Cost Pool Budgeted Cost Product A1 Product B2
Activity 1 $60,000 2,400 6,000
Activity 2 $75,000 3,440 5,960
Activity 3 $104,000 8,400 2,000
Annual production and sales level of Product A1 is 9,680 units, and the annual production and sales level of Product B2 is 23,510 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing?
A) $7.14
B) $7.98
C) $10.00
D) $13.28
E) $4.70
Answers: 3
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A company has two products: A1 and B2. It uses activity-based costing and has prepared the following...
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