A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity foreach of its three activity cost pools:Budgeted ActivityProduct A Product BActivity Cost PoolActivity 1Activity 2Activity 3Budgeted Cost$106,0004,9004,700$ 81,0006,4007,400$131,0004,4007,150Annual production and sales level of Product A is 36,200 units, and the annual production and sales level of Product B is 71,450 units. What is theapproximate overhead cost per unit of Product A under activity-based costing?Multiple Choice$1.41O $3.91$11.04$2.47

Name: A company has two products: A and B. It uses activity-based costing a
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Description: A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity foreach of its three activity cost pools:Budgeted ActivityProduct A Product BActivity Cost PoolActivity 1A

Calculation of Activity Rate for each activity pool Particulars Budgeted Cost Budgeted Activity -…

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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 Activity 1 Activity 2 Activity 3 Budgeted Cost $106,000 $ 81,000 Product A Product B 4,700 7,400 4,900 6,400 $131,000 4,400 7,150 Annual production and sales level of Product A is 36,200 units, and the annual production and sales level of Product B is 71,450 units. What is the approximate overhead cost per unit of Product A under activity-based costing? Multiple Choice $1.41 $3.91 $11.04 $2.47

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 Activity 1 Activity 2 Activity 3 Budgeted Cost $106,000 $ 81,000 Product A Product B 4,700 7,400 4,900 6,400 $131,000 4,400 7,150 Annual production and sales level of Product A is 36,200 units, and the annual production and sales level of Product B is 71,450 units. What is the approximate overhead cost per unit of Product A under activity-based costing? Multiple Choice $1.41 $3.91 $11.04 $2.47

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...

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