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What is the approximate overhead cost per unit of product

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Reference no: EM132610667

Question 1: A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Annual production and sales level of Product A1 is 8,580 units, and the annual production and sales level of Product B2 is 22,410 units. What is the approximate overhead cost per unit of Product A1 under activity-based costing?

Activity Cost Pool              Budgeted Cost            Product A1             Product B2

Activity 1                                $49,000                  1,300                   4,900

Activity 2                                 $64,000                  2,340                   4,860

Activity 3                                   $82,000                  7,300                     900

Reference no: EM132610667

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