Compute approximate overhead cost per unit of product

Assignment Help Accounting Basics

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

Questions Cloud

Identify the potential risks found in the organization : Identify the potential risks found in the organization and for it's ability to function in it's chosen business vertical .

Percentage of the revenues she or he generates : You are the manager of DDMSS (Door-to-Door Medicare Supplement Sales, Inc.) in Florida. Each salesperson is paid a base salary plus a percentage.

Discuss what is the recoverable amount of the patent : the fair value less costs of disposal is $35 million. Under FRS 36 Impairment of Assets, what is the recoverable amount of the patent

How do you think politics fits into economics : How do you think politics fits into economics? A question for my macroeconomics class.

Compute approximate overhead cost per unit of product : 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.

Discuss potential advantages of membership in organization : Discuss Potential advantages of membership in the organization. Create a topic for an upcoming meeting that would appeal to your target audience.

Decrease in government spending : Would an in taxes by $1 trillion have the same effect on the US economy as a decrease in government spending of $1 trillion?

Discuss hay and barnabas companys information system : There are five adjustments that need to be made before the financial statements can be prepared at year end

Static and dynamic views : 1. Briefly contrast the static and dynamic views of monopoly and the policies appropriate for each.

User Account

All Pages