Home / Questions / A company has two products: A and B. It uses activity-based costing and has prepared the f...
| 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 | Budgeted Cost | Product A | Product B |
| Activity 1 | $100,800 | 3,300 | 3,100 |
| Activity 2 | $71,680 | 5,100 | 6,100 |
| Activity 3 | $103,320 | 2,800 | 5,600 |
|
Annual production and sales level of Product A is 44,500 units, and the annual production and sales level of Product B is 44,800 units. What is the approximate overhead cost per unit of Product A under activity-based costing? |
$15.75
$10.28
$6.40
$2.68
$2.66
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