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

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

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 Answer of 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.

Jason Corporation Uses Activity-Based Costing