A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showingbudgeted cost and activity for each of its three activity cost pools:Activity Cost PoolBudgeted ActivityProduct A Product BActivity 1Budgeted Cost$ 99,000$ 74,0004,2004,000Activity 25,7006,700Activity 3$117,0003,7006,450Annual production and sales level of Product A is 35,500 units, and the annual production and sales level of ProductB is 70,750 units. What is the approximate overhead cost per unit of Product B under activity-based costing?Multiple Choice$3.59$2.30

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 showingbudgeted cost and activity for each of its three activity cost pools:Activity Cost PoolBudgeted ActivityProduct A Product BActivity 1B

Activity-based costing is the method of costing used for the allocation of overhead between two…

Business

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 Product A Product B Activity Cost Pool Activity 1 Budgeted Cost $ 99,000 $ 74,000 4,200 4,000 5,700 6,700 Activity 2 Activity 3 $117,000 3,700 6,450 Annual production and sales level of Product A is 35,500 units, and the annual production and sales level of Product B is 70,750 units. What is the approximate overhead cost per unit of Product B under activity-based costing? Multiple Choice $3.59 $2.30

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 Product A Product B Activity Cost Pool Activity 1 Budgeted Cost $ 99,000 $ 74,000 4,200 4,000 5,700 6,700 Activity 2 Activity 3 $117,000 3,700 6,450 Annual production and sales level of Product A is 35,500 units, and the annual production and sales level of Product B is 70,750 units. What is the approximate overhead cost per unit of Product B under activity-based costing? Multiple Choice $3.59 $2.30

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter18: Activity-based Costing

Section: Chapter Questions

Problem 8E: Comfort Foods Inc. uses activity-based costing to determine product costs. For each activity listed...

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