A company has two products: A and B. It uses activity-based costing and has prepared...
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Accounting
A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:
| Budgeted Activity | |||||||||
| Activity Cost Pool | Budgeted Cost | Product A | Product B | ||||||
| Activity 1 | $ | 90,000 | 3,300 | 3,100 | |||||
| Activity 2 | $ | 65,000 | 4,800 | 5,800 | |||||
| Activity 3 | $ | 99,000 | 2,800 | 5,550 | |||||
Annual production and sales level of Product A is 34,600 units, and the annual production and sales level of Product B is 69,850 units. What is the approximate overhead cost per unit of Product A under activity-based costing?
Multiple Choice
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$2.14
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$10.29
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$3.15
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$14.06
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$2.08
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