Matt Company uses activity-based costing. The company has two products: A and B. The annual 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 Activity Activity Cost Pool Total Cost Product A Product B Total Activity 1 $26,845 240 350 590 Activity 2 $44,625 980 210 1,190 Activity 3 $155,520 870 3990 4860 The activity-based costing cost ore unit of Product A is closest to (Round your intermediate calculations to 2 decimal places.) A. $8.39 per unit B. $3.19 per unit C. $14.38 per unit D. $3.89 per units
Matt Company uses activity-based costing. The company has two products: A and B. The annual 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 Activity Activity Cost Pool Total Cost Product A Product B Total Activity 1 $26,845 240 350 590 Activity 2 $44,625 980 210 1,190 Activity 3 $155,520 870 3990 4860 The activity-based costing cost ore unit of Product A is closest to (Round your intermediate calculations to 2 decimal places.) A. $8.39 per unit B. $3.19 per unit C. $14.38 per unit D. $3.89 per units
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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
Transcribed Image Text:Matt Company uses activity-based costing. The company has two products: A and B. The
annual 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 Activity
Activity Cost Pool Total Cost
Product A
Product B
Total
Activity 1
$26,845
240
350
590
Activity 2
$44,625
980
210
1,190
Activity 3
$155,520
870
3990
4860
The activity-based costing cost ore unit of Product A is closest to (Round your
intermediate calculations to 2 decimal places.)
A. $8.39 per unit
B. $3.19 per unit
C. $14.38 per unit
D. $3.89 per units
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