Arthur Company has two products: S and D. The company uses activity-based costing and has prepared the following analysis, showing the estimated total cost and expected activity for each of its three activity cost pools:

The annual production and sales of Product S is 4,547 units. The annual production and sales of Product D is 7,913.
-The cost per unit of Product S under activity-based costing is closest to which of the following?
A) $1.83.
B) $1.98.
C) $5.00.
D) $10.00.

Question

Arthur Company has two products: S and D. The company uses activity-based costing and has prepared the following analysis, showing the estimated total cost and expected activity for each of its three activity cost pools:

The annual production and sales of Product S is 4,547 units. The annual production and sales of Product D is 7,913.
-The cost per unit of Product S under activity-based costing is closest to which of the following?
A) $1.83. 
B) $1.98. 
C) $5.00. 
D) $10.00.

Quizplus · Accepted Answer

The Answer of Arthur Company has two products: S and D. The company uses activity-based costing and has prepared the following analysis, showing the estimated total cost and expected activity for each of its three activity cost pools:

The annual production and sales of Product S is 4,547 units. The annual production and sales of Product D is 7,913.
-The cost per unit of Product S under activity-based costing is closest to which of the following?
A) $1.83. 
B) $1.98. 
C) $5.00. 
D) $10.00.

Arthur Company Has Two Products: S and D