Lindsey Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 5,000 units and of Product B is 2,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: Activity Cost Pools Estimated Overhead Cost Expected Activity Product A Product B Activity 1 Activity 2 Activity 3 $ 24,000 $36,900 $ 63,000 $13.77 $14.11 $7.00 $17.70 Total 200 750 1,000 800 1,000 150 900 800 1,800 The overhead cost per unit of Product A under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Lindsey Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 5,000 units and of Product B is 2,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: Activity Cost Pools Estimated Overhead Cost Expected Activity Product A Product B Activity 1 Activity 2 Activity 3 $ 24,000 $36,900 $ 63,000 $13.77 $14.11 $7.00 $17.70 Total 200 750 1,000 800 1,000 150 900 800 1,800 The overhead cost per unit of Product A under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
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Lindsey Company uses activity-based costing. The company has two products: A and B. The
annual production and sales of Product A is 5,000 units and of Product B is 2,000 units. There are
three activity cost pools, with estimated total cost and expected activity as follows:
Activity Cost Pools Estimated Overhead Cost Expected Activity
Product A
Product B
$ 24,000
$36,900
$ 63,000
Activity 1
Activity 2
Activity 3
Total
200
750
1,000
$13.77
$14.11
$7.00
O $17.70
800 1,000
150 900
800 1,800
The overhead cost per unit of Product A under activity-based costing is closest to: (Round
your intermediate calculations to 2 decimal places.)
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