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A company has two products: A and B. It uses activity-based costing and has prepared the...

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Accounting

A company has two products: A and B. It uses activity-basedcosting and has prepared the following analysis showing budgetedcost and activity for each of its three acivity cot pools.

Cost PoolBudgeted CostProduct AProduct B

Activity 1

$87,0003,0002,800
Activity 2$62,0004,5005,500
Activity 3$93,0002,5005,250

Annual Production and sales level of Product A is, 34,300 units,and the annual production and sales level of Product B is 69,550Units. What is the approximate overhead cost per unit of Product Aunder activity based costing?

Answer & Explanation Solved by verified expert
3.8 Ratings (640 Votes)
Total of Activity 1 for product A and B 3000 2800 5800 So unit cost of Activity 1 Total cost Total quantity 87000 5800 15 per activity 1 So cost of Activity 1    See Answer
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Transcribed Image Text

A company has two products: A and B. It uses activity-basedcosting and has prepared the following analysis showing budgetedcost and activity for each of its three acivity cot pools.Cost PoolBudgeted CostProduct AProduct BActivity 1$87,0003,0002,800Activity 2$62,0004,5005,500Activity 3$93,0002,5005,250Annual Production and sales level of Product A is, 34,300 units,and the annual production and sales level of Product B is 69,550Units. What is the approximate overhead cost per unit of Product Aunder activity based costing?

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