Reference no: EM132197315
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 $ 88,000 3,100 2,900
Activity 2 $ 63,000 4,600 5,600
Activity 3 $ 95,000 2,600 5,350
Annual production and sales level of Product A is 34,400 units, and the annual production and sales level of Product B is 69,650 units. What is the approximate overhead cost per unit of Product A under activity-based costing?
$2.26
$3.05
$2.03
$10.29
$14.67