activity car pool est. overhead cost expected activity A B total #1 $29,200 1000 500 1500 #2 $40,000 200 800 1000 #3 $180,000 600 5400 6000 Chibucos Company has two products: A and B. The annual production and sales level of Product A is 9,094 units. The annual production and sales level of Product B is 15,826. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools. The overhead cost per unit of Product A under activity-based costing is closest to: options: 1. $1.83 2. $1.98 3. $5.00 4. $10.00
activity car pool est. overhead cost expected activity A B total #1 $29,200 1000 500 1500 #2 $40,000 200 800 1000 #3 $180,000 600 5400 6000 Chibucos Company has two products: A and B. The annual production and sales level of Product A is 9,094 units. The annual production and sales level of Product B is 15,826. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools. The overhead cost per unit of Product A under activity-based costing is closest to: options: 1. $1.83 2. $1.98 3. $5.00 4. $10.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
| activity car pool | est. |
expected activity
|
total | ||
| #1 | $29,200 |
|
1500 | ||
| #2 | $40,000 |
|
1000 | ||
| #3 | $180,000 |
|
6000 |
Chibucos Company has two products: A and B. The annual production and sales level of Product A is 9,094 units. The annual production and sales level of Product B is 15,826. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools.
The overhead cost per unit of Product A under activity-based costing is closest to:
options:
1. $1.83
2. $1.98
3. $5.00
4. $10.00
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