Business, 13.03.2020 17:27, eymurezgi1

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:

Budgeted Activity

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

Answers: 2

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