Alexander Inc. uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1800 units, while the expected annual production of Pops is 2500 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows: Expected activity Activity cost pool Estimated cost Snaps Pops Total Assembly $5648 620 160 780 Testing $26,115 1000 600 1600 Packing $2801 50 185 235 The overhead cost per unit of Pops would be closest to (Round all answers to two decimal places.) Question 24 options: $5.26 $8.56 $7.31 $11.89
Alexander Inc. uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1800 units, while the expected annual production of Pops is 2500 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows: Expected activity Activity cost pool Estimated cost Snaps Pops Total Assembly $5648 620 160 780 Testing $26,115 1000 600 1600 Packing $2801 50 185 235 The overhead cost per unit of Pops would be closest to (Round all answers to two decimal places.) Question 24 options: $5.26 $8.56 $7.31 $11.89
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Alexander Inc. uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1800 units, while the expected annual production of Pops is 2500 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows:
Theoverhead cost per unit of Pops would be closest to (Round all answers to two decimal places.)
| | | Expected activity |
| Activity cost pool | Estimated cost | Snaps | Pops | Total |
| Assembly | $5648 | 620 | 160 | 780 |
| Testing | $26,115 | 1000 | 600 | 1600 |
| Packing | $2801 | 50 | 185 | 235 |
The
Question 24 options:
|
|
$5.26
|
|
|
$8.56
|
|
|
$7.31
|
|
|
$11.89
|
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