A company has two products: A1 and 82. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activities: Activity Activity 1 Activity 2 Activity 3 Budgeted Cost Activity Cost Driver $ 48,000 $ 63,000 $ 80,000 Square feet Units repaired Orders Budgeted Activity Product A1 Product B2 1,200 2,240 7,200 4,800 4,760 800 Annual production and sales level of Product A1 is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing?
A company has two products: A1 and 82. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activities: Activity Activity 1 Activity 2 Activity 3 Budgeted Cost Activity Cost Driver $ 48,000 $ 63,000 $ 80,000 Square feet Units repaired Orders Budgeted Activity Product A1 Product B2 1,200 2,240 7,200 4,800 4,760 800 Annual production and sales level of Product A1 is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing?
Chapter1: Financial Statements And Business Decisions
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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 activities:
Activity
Activity 1
Activity 2
Activity 3
Budgeted Cost Activity Cost Driver
$ 48,000
$ 63,000
$ 80,000
Budgeted Activity
Product A1 Product B2
1,200
2,240
7,200
Square feet
Units repaired
4,800
4,760
Orders
800
Annual production and sales level of Product A1 is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the
approximate overhead cost per unit of Product B2 under activity-based costing?
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$9.00
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