The overhead cost per unit of Product A under the activity-based costing system is closest to:
A) $86.97
B) $70.79
C) $81.20
D) $11.24

Question

Quizplus · Accepted Answer

The overhead cost per unit of Product A under the activity-based costing system is closest to $86.97. This is because the activity-based costing system allocates overhead costs to products based on the activities that are used to produce them. In this case, Product A uses more of the activities that are associated with higher overhead costs, such as machine setup and inspection. As a result, Product A has a higher overhead cost per unit than products that use less of these activities.

The Overhead Cost Per Unit of Product a Under the Activity-Based