A company has two products: A1 and 82. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activities: Activity Activity 1 Activity 2 Activity 3 Budgeted Cost Activity Cost Driver $ 48,000 $ 63,000 $ 80,000 Square feet Units repaired Orders Budgeted Activity Product A1 Product B2 1,200 2,240 7,200 4,800 4,760 800 Annual production and sales level of Product A1 is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing?
A company has two products: A1 and 82. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activities: Activity Activity 1 Activity 2 Activity 3 Budgeted Cost Activity Cost Driver $ 48,000 $ 63,000 $ 80,000 Square feet Units repaired Orders Budgeted Activity Product A1 Product B2 1,200 2,240 7,200 4,800 4,760 800 Annual production and sales level of Product A1 is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...
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