K ltd. Produces two products, namely Product A and product B. It uses activity-based costing that allocates manufacturing overheads in 3 activity cost pool. Activity Budgeted overhead Product Product cost pool cost A B Activity 1 $80,000 200 800 Activity 2 $58,400 1000 500 Activity 3 $360,000 600 5400 Annual production and sales for product A and product B is 20,000 units and 31,652 units. Determine the manufacturing overhead cost per unit for product B. (Round all the intermediate calculations and the final answer to 2 decimal places.) $2.87 $10.55 $4.55 $12.87

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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K ltd. Produces two products, namely Product A and product B. It uses activity-based costing that allocates manufacturing overheads in 3 activity cost pool.
Activity
Budgeted
overhead Product Product
cost pool
cost
A
B
Activity 1
$80,000
200
800
Activity 2
$58,400
1000
500
Activity 3
$360,000
600
5400
Annual production and sales for product A and product B is 20,000 units and 31,652 units.
Determine the manufacturing overhead cost per unit for product B. (Round all the intermediate calculations and the final answer to 2 decimal places.)
$2.87
$10.55
$4.55
$12.87
Transcribed Image Text:K ltd. Produces two products, namely Product A and product B. It uses activity-based costing that allocates manufacturing overheads in 3 activity cost pool. Activity Budgeted overhead Product Product cost pool cost A B Activity 1 $80,000 200 800 Activity 2 $58,400 1000 500 Activity 3 $360,000 600 5400 Annual production and sales for product A and product B is 20,000 units and 31,652 units. Determine the manufacturing overhead cost per unit for product B. (Round all the intermediate calculations and the final answer to 2 decimal places.) $2.87 $10.55 $4.55 $12.87
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