Assignment 5 Activity Based Costing accoun5

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School

Algoma University *

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2313

Subject

Accounting

Date

Nov 24, 2024

Type

docx

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1

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Part E Ottawa Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A are 8,000 units and of Product B are 6,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: Activity Estimated Expected Activity Cost Pool Cost Product A Product B Total Activity 1 $20,000 100 400 500 Activity 2 $37,000 800 200 1,000 Activity 3 $91,200 800 3,000 3,800 The cost per unit of Product A under activity-based costing is closest to: A. $2.40. B. $3.90. C. $6.60. D. $10.59.
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