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Business, 06.03.2020 07:19 kaylee0424

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:

Budgeted Activity
Activity Cost Pool Budgeted Cost Product A1 Product B2
Activity 1 $ 49,000 1,300 4,900
Activity 2 $ 64,000 2,340 4,860
Activity 3 $ 82,000 7,300 900

Annual production and sales level of Product A1 is 8,580 units, and the annual production and sales level of Product B2 is 22,410 units.
What is the approximate overhead cost per unit of Product A1 under activity-based costing?

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Answers: 2

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A company has two products: A1 and B2.
It uses activity-based costing and has prepared the fo...
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