Compute approximate overhead cost per unit of product

Reference no: EM131770477

Question: A company has two products: A and B. 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 A	Product B
Activity 1	$97,000	4,000	3,800
Activity 2	$72,000	5,500	6,500
Activity 3	$113,000	3,500	6,250

Annual production and sales level of Product A is 35,300 units, and the annual production and sales level of Product B is 70,550 units. What is the approximate overhead cost per unit of Product B under activity-based costing?

$3.49

$2.25

$10.28

$12.44

$1.77

Reference no: EM131770477

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