Murphy Company produces two products: Standard and Deluxe.The company uses an activity-based costing system.Murphy produced 8,000 units of Standard and 2,000 units of Deluxe.The company uses two activity cost pools, with estimated total cost and activity as follows: What is the cost per unit of Standard under activity-based costing?
A)$1.75
B)$9.00
C)$15.00
D)$16.00

Question

Murphy Company produces two products: Standard and Deluxe.The company uses an activity-based costing system.Murphy produced 8,000 units of Standard and 2,000 units of Deluxe.The company uses two activity cost pools, with estimated total cost and activity as follows:  What is the cost per unit of Standard under activity-based costing?
A)$1.75 
B)$9.00 
C)$15.00 
D)$16.00

Quizplus · Accepted Answer

The Answer of Murphy Company produces two products: Standard and Deluxe.The company uses an activity-based costing system.Murphy produced 8,000 units of Standard and 2,000 units of Deluxe.The company uses two activity cost pools, with estimated total cost and activity as follows:  What is the cost per unit of Standard under activity-based costing?
A)$1.75 
B)$9.00 
C)$15.00 
D)$16.00

Murphy Company Produces Two Products: Standard and Deluxe