Please solve this one with calculation and explanation Matt Company uses activity-based costing. The company has two products: A and B. Theannual production and sales of Product A are 9.000 units, and of Product B is 7.500 units.There are three activity cost pools, with a total cost and total activity as follows:Total ActivityActivity Cost Pool Total CostProduct AProduct BTotalActivity 1$26,845240350590Activity 2$44,6259802101,190Activity 3$155,52087039904860The activity-based costing cost ore unit of Product A is closest to (Round yourintermediate calculations to 2 decimal places.)A. $8.39 per unitB. $3.19 per unitC. $14.38 per unitD. $3.89 per units

Step 1: Definition of Total Cost:The sum of every amount spent on producing goods and services is…

Answered: Matt Company uses activity-based…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...

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Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
Rex Industries has two products. They manufactured 12,539 units of product A and 8.254 units of product B. The data are: What is the activity rate for each cost pool?
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Required: 1. Prepare a cost report for the year ending 20x1 that shows value-added costs, non-value-added costs, and total costs for each activity. 2. Explain why expediting products and storing goods are non-value-added activities. 3. What if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? What is the implication for reducing the cost of waste for each activity?
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Pat Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 8,000 units and of Product B is 2,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: Expected Activity Activity Cost Pool Estimated Cost Product A Product B Total Activity 1…………… $12,000 750 250 1,000 Activity 2…………… $16,000 400 100 500 Activity 3…………… $36,000 2,000 1,000 3,000 The cost per unit of Product B under activity-based costing is closest to: A. $10.67. B. $6.40. C. $6.00. D. $9.10.
Annika Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three activity cost pools, with total cost and activity as follows: Total Activity Activity Cost Pool Total Cost Product A Product B Total Activity 1 $ 18,000 700 300 1,000 Activity 2 $ 24,000 500 100 600 Activity 3 $ 60,000 800 400 1,200 The activity-based costing cost per unit of Product A is ?
Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 8,000 units and of Product B is 6,000 units. There are three activity cost pools, with total cost and total activity as follows: Total Activity Activity Cost Pool Total Cost Product A Product B Product C Activity 1 $20,000 100 400 500 Activity 2 $37,000 800 200 1,000 Activity 3 $91,200 800 3,000 3,800 The activity-based costing cost per unit of Product A is $2.40 $3.90 $10.59 $6.60 None of the above
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Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,100 units and of Product B is 1,200 units. There are three activity cost pools, with estimated costs and expected activity as follows: Estimated Expected Activity Overhead Activity Cost Pools Activity 1 Activity 2 Activity 3 Cost Product A Product B Total $60,791 $83,421 1,600 2,600 1,500 1,300 3,100 3,900 $97,442 840 820 1,660 The overhead cost per unit of Product B is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $63.47 $87.80 $33 99
Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,100 units and of Product B is 1,200 units. There are three activity cost pools, with estimated costs and expected activity as follows: Activity Cost Pools Estimated Overhead Cost Expected Activity Product A Product B Total Activity 1 $ 60,791 1,600 1,500 3,100 Activity 2 $ 83,421 2,600 1,300 3,900 Activity 3 $ 97,442 840 820 1,660 The overhead cost per unit of Product B is closest to: (Round your intermediate calculations to 2 decimal places.)

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