Monson Company has two products: G and P. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools:   Activity   Expected Activity Cost Pool Estimated Ovhd. Cost Product G Product P Total Activity 1 $30,000 200 400 600 Activity 2 $24,000 600 900 1,500 Activity 3 $80,000 400 3,600 4,000 The annual production and sales of Product G is 10,640 units. The annual production and sales of Product P is 26,600. The overhead cost per unit of Product P under activity-based costing is closest to:  $6.88.   $4.00.   $30.16.   $10.00.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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8. 

Monson Company has two products: G and P. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools:
 

Activity   Expected Activity
Cost Pool Estimated Ovhd. Cost Product G Product P Total
Activity 1 $30,000 200 400 600
Activity 2 $24,000 600 900 1,500
Activity 3 $80,000 400 3,600 4,000



The annual production and sales of Product G is 10,640 units. The annual production and sales of Product P is 26,600.

The overhead cost per unit of Product P under activity-based costing is closest to: 

  • $6.88.
  •  
    $4.00.
  •  
    $30.16.
  •  
    $10.00. 
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