Activity Estimated Expected Activity Total Car Pool Overhead Cost Product A Product B # 1 $29.200 1.000 500 1,500 # 2 $40,000 200 800 1,000 # 3 $180,000 600 5,400 6,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Using the attached chart The overhead cost per unit of Product A under activity-based costing is what?

 

 

Activity
Car Pool
Estimated
Expected Activity
Total
Overhead Cost
Product A
Product B
# 1
$29.200
1.000
500
1,500
# 2
$40,000
200
800
1,000
# 3
$180,000
600
5,400
6,000
Transcribed Image Text:Activity Car Pool Estimated Expected Activity Total Overhead Cost Product A Product B # 1 $29.200 1.000 500 1,500 # 2 $40,000 200 800 1,000 # 3 $180,000 600 5,400 6,000
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Activity-Based Costing:-It is a method of costing where the cost for each activity associated with the manufacturing of product and services is assigned according to its actual consumption.

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