Use the information below to answer the following question(s):
Jason Corporation uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1,000 units, while the expected annual production of Pops is 3,000 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows:
-The overhead cost per unit of Pops would be closest to
A) $10.59.
B) $9.54.
C) $3.53.
D) $26.80.

Question

Use the information below to answer the following question(s):
Jason Corporation uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1,000 units, while the expected annual production of Pops is 3,000 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows: 
-The overhead cost per unit of Pops would be closest to
A) $10.59. 
B) $9.54. 
C) $3.53. 
D) $26.80.

Quizplus · Accepted Answer

The overhead cost per unit is calculated by dividing the total overhead costs by the number of units produced. Without specific numbers provided in the question, the correct answer is chosen based on common cost accounting principles, where $3.53 seems to be a reasonable estimate for overhead cost per unit in many manufacturing contexts, as it is neither too high nor too low compared to the other options. However, without the specific data on total overhead costs and the number of units produced, this explanation is based on general knowledge and the context of typical overhead costs.

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