Question: Pat Company uses activity-based costing. The company has two products: A and B. The annual production and sales for Product A is 1,800 units and for Product B it's 1,050 units. There are three activity cost pools, with estimated costs and expected activity as follows: Estimated Activities Expected Activity Overhead Cost Product A Product Total B Activity 1 $46,775 1,300 1,200 2,500 Activity 2 $68,277 2,300 1,000 3,300 Activity 3 $82,502 720 700 1,420 The overhead cost per unit of Product A under activity-based costing is closest to: A. $139.12 B. $68.28 C. $32.88 D. $63.19
Question: Pat Company uses activity-based costing. The company has two products: A and B. The annual production and sales for Product A is 1,800 units and for Product B it's 1,050 units. There are three activity cost pools, with estimated costs and expected activity as follows: Estimated Activities Expected Activity Overhead Cost Product A Product Total B Activity 1 $46,775 1,300 1,200 2,500 Activity 2 $68,277 2,300 1,000 3,300 Activity 3 $82,502 720 700 1,420 The overhead cost per unit of Product A under activity-based costing is closest to: A. $139.12 B. $68.28 C. $32.88 D. $63.19
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question:
Pat Company uses activity-based costing. The company has two
products: A and B. The annual production and sales for Product A
is 1,800 units and for Product B it's 1,050 units. There are three
activity cost pools, with estimated costs and expected activity as
follows:
Estimated
Activities
Expected Activity
Overhead Cost
Product A Product Total
B
Activity 1 $46,775
1,300
1,200
2,500
Activity 2
$68,277
2,300
1,000
3,300
Activity 3 $82,502
720
700
1,420
The overhead cost per unit of Product A under activity-based
costing is closest to:
A. $139.12
B. $68.28
C. $32.88
D. $63.19
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