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 of its three activities Activity Activity 1 Activity 2 Activity 3 Muple Choice O O O Annual production and sales level of Product A is 36,000 units, and the annual production and sales level of Product B is 71,250 units. What is the approximate overhead cost per une of Product B under activity-based costing? $2.42 $11.30 $148 $10.26 Budgeted Cost $ 104,000 $ 79,000 $ 127,000 $3.82 Activity Cost Driver Square feet Units produced Setups Budgeted Activity Product A 4,700 6,200 4,200 Product B 4,500 7,200 6,950
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 of its three activities Activity Activity 1 Activity 2 Activity 3 Muple Choice O O O Annual production and sales level of Product A is 36,000 units, and the annual production and sales level of Product B is 71,250 units. What is the approximate overhead cost per une of Product B under activity-based costing? $2.42 $11.30 $148 $10.26 Budgeted Cost $ 104,000 $ 79,000 $ 127,000 $3.82 Activity Cost Driver Square feet Units produced Setups Budgeted Activity Product A 4,700 6,200 4,200 Product B 4,500 7,200 6,950
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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
of its three activities
Budgeted Activity
Activity
Activity 1
Activity 2
Activity 3
Muple Choice
O
O
O
Annual production and sales level of Product A is 36,000 units, and the annual production and sales level of Product B is 71,250 units. What is the approximate overhead cost per une of Product B under
activity-based costing?
$2.42
$11.30
$148
$10.26
Budgeted Cost
$ 104,000
$ 79,000
$ 127,000
$3.82
Activity Cost Driver
Square feet
Units produced
Setups
Product A
4,700
6,200
4,200
Product B
4,500
7,200
6,950
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