Unit of product using activity-based costing

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Reference no: EM13776461

Assume that a pet food manufacturer s considering adding two types of pet food to its existing product line. Research had determined that good demand exists for dog food in 40-pound bags and cat food in 1/2 pound cans. The company identified the following partial list of activities, costs, and activity drivers expected for the next year:

Activity Expected Costs Cost Driver

Handling Materials $105,000 Number of batches made

Storage Costs $820,000 Weight of finished product

Dog Food Cat Food

Production Volume 100,000 units 200,000 units

Batches Made 200 150

Refer to the data above. How much overhead cost will be assigned to each unit of product using activity-based costing (ABC)?

Reference no: EM13776461

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