Discuss company uses activity-based costing

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1. Abraham Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,300 units and of Product B is 1,300 units. There are three activity cost pools, with estimated costs and expected activity as follows:

Activities Estimated Overhead Cost Expected Activity
Product A Product B Total
Activity 1 $70,735 1,800 1,700 3,500
Activity 2 $94,127 2,800 1,500 4,300
Activity 3 $107,562 920 900

1,820

The overhead cost per unit of Product A is closest to:

$66.11

$75.67

$92.60

$52.34

 

 

Reference no: EM131793735

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