Monson Company has two products: G and P. 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 G is 10,640 units. The annual production and sales of Product P is 26,600.
-The cost per unit of Product P under activity-based costing is closest to which of the following?
A) $4.00.
B) $6.88.
C) $10.00.
D) $30.16.

Question

Monson Company has two products: G and P. 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 G is 10,640 units. The annual production and sales of Product P is 26,600.
-The cost per unit of Product P under activity-based costing is closest to which of the following?
A) $4.00. 
B) $6.88. 
C) $10.00. 
D) $30.16.

Quizplus · Accepted Answer

The Answer of Monson Company has two products: G and P. 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 G is 10,640 units. The annual production and sales of Product P is 26,600.
-The cost per unit of Product P under activity-based costing is closest to which of the following?
A) $4.00. 
B) $6.88. 
C) $10.00. 
D) $30.16.

Monson Company Has Two Products: G and P