A company has two products: A1 and B2.It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Annual production and sales level of Product A1 is 8,480 units,and the annual production and sales level of Product B2 is 22,310 units.
-What is the approximate overhead cost per unit of Product B2 under activity-based costing?
A)$8.00
B)$9.00
C)$10.00
D)$12.00
E)$4.00

Question

A company has two products: A1 and B2.It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:  Annual production and sales level of Product A1 is 8,480 units,and the annual production and sales level of Product B2 is 22,310 units.
-What is the approximate overhead cost per unit of Product B2 under activity-based costing?
A)$8.00 
B)$9.00 
C)$10.00 
D)$12.00 
E)$4.00

Quizplus · Accepted Answer

The Answer of A company has two products: A1 and B2.It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:  Annual production and sales level of Product A1 is 8,480 units,and the annual production and sales level of Product B2 is 22,310 units.
-What is the approximate overhead cost per unit of Product B2 under activity-based costing?
A)$8.00 
B)$9.00 
C)$10.00 
D)$12.00 
E)$4.00

A Company Has Two Products: A1 and B2