A company has two products: A and B. It uses activity-based costing and has prepared the following analysis in the table 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 $115500 3600 3400 Activity 2 $81220 5700 6700 Activity 3 $113400 3100 5900 Annual production and sales level of Product A is 54700 units, and the annual production and sales level of Product B is 34850 units. What is the approximate overhead cost per unit of Product A under activity-based costing? • (a) $10.28 . (b) $6.55 . (c) $3.90 . (d) $2.48

A company has two products: A and B. It uses activity-based costing and has prepared the following analysis in the table 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 $115500 3600 3400 Activity 2 $81220 5700 6700 Activity 3 $113400 3100 5900 Annual production and sales level of Product A is 54700 units, and the annual production and sales level of Product B is 34850 units. What is the approximate overhead cost per unit of Product A under activity-based costing? • (a) $10.28 . (b) $6.55 . (c) $3.90 . (d) $2.48

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 4P: Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2....

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Subject :-Account
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