Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,100 uni Product B is 1,200 units. There are three activity cost pools, with estimated costs and expected activity as follows: Estimated Expected Activity Overhead Activity Cost Pools Activity 1 Cost Product A Product B Total Activity 2 Activity 3 $60,791 $83,421 $97,442 1,600 2,600 1,500 1,300 3,100 3,900 1,660 840 820 The overhead cost per unit of Product B is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice

Principles of Accounting Volume 2
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Author:OpenStax
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Chapter2: Building Blocks Of Managerial Accounting
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Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,100 units and of
Product B is 1,200 units. There are three activity cost pools, with estimated costs and expected activity as follows:
Estimated
Expected Activity
Overhead
Activity Cost Pools
Activity 1
Activity 2
Activity 3
Cost
Product A Product B
Total
$60,791
$83,421
1,600
2,600
1,500
1,300
3,100
3,900
$97,442
840
820
1,660
The overhead cost per unit of Product B is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$63.47
$87.80
$33 99
Transcribed Image Text:Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,100 units and of Product B is 1,200 units. There are three activity cost pools, with estimated costs and expected activity as follows: Estimated Expected Activity Overhead Activity Cost Pools Activity 1 Activity 2 Activity 3 Cost Product A Product B Total $60,791 $83,421 1,600 2,600 1,500 1,300 3,100 3,900 $97,442 840 820 1,660 The overhead cost per unit of Product B is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $63.47 $87.80 $33 99
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