Pharoah Company produces two products: Standard and Deluxe. The company uses an activity-based costing system....
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Pharoah Company produces two products: Standard and Deluxe. The company uses an activity-based costing system. Pharoahproduced 9700 units of Standard and 3700 units of Deluxe. The company uses two activity cost pools, with estimated total cost and activity as follows:
| Expected Activity | |||||
|---|---|---|---|---|---|
| Activity Cost Pool | Estimated Cost | Standard | Deluxe | ||
| #1 | $13700 | 670 | 420 | ||
| #2 | $25700 | 570 | 1370 | ||
What is the cost per unit of Standard under activity-based costing?
$12.57
$4.91
$1.65
$13.25
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