X Corp uses ABC to determine unit product cost. The company has two products namely G and N. The company's production for G and N are 1,000 units and 2,000 units, respectively. There are three overhead activity centers with overhead cost and product's  activity as follows: The overhead cost per unit of Product N under ABC is? A. 5.25 B. 10,500 C. 10.00 D. 6.50 E. 20,000

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter5: Operating Activities: Purchases And Cash Payments
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X Corp uses ABC to determine unit product cost. The company has two products namely G and N. The company's production for G and N are 1,000 units and 2,000 units, respectively. There are three overhead activity centers with overhead cost and product's  activity as follows:

<Refer to image>

The overhead cost per unit of Product N under ABC is?

A. 5.25

B. 10,500

C. 10.00

D. 6.50

E. 20,000

G Activity
100
N Activity
100
ACTIVITY
Overhead Cost
Inspection
10,000.00
Storage
50
50
5,000.00
Move in/Handling
20
30
5,000.00
Transcribed Image Text:G Activity 100 N Activity 100 ACTIVITY Overhead Cost Inspection 10,000.00 Storage 50 50 5,000.00 Move in/Handling 20 30 5,000.00
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