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 activities Budgeted Activity Activity Multiple Choice O O 6,400 Activity 1 Activity 2 Activity 3 6,360 2,400 Annual production and sales level of Product A1 is 10,080 units, and the annual production and sales level of Product B2 is 23,910 units. What is the approximate overhead cost per unit of Product A1 under activity-based costing? O $6.96 $775 $10.00 O $13.61 Budgeted Cost $ 64,000 $ 79,000 $ 112,000 $4.93 Activity Cost Driver Square feet. Units repaired Orders Product A1 2,800 3,840 8,800 Product B2
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 activities Budgeted Activity Activity Multiple Choice O O 6,400 Activity 1 Activity 2 Activity 3 6,360 2,400 Annual production and sales level of Product A1 is 10,080 units, and the annual production and sales level of Product B2 is 23,910 units. What is the approximate overhead cost per unit of Product A1 under activity-based costing? O $6.96 $775 $10.00 O $13.61 Budgeted Cost $ 64,000 $ 79,000 $ 112,000 $4.93 Activity Cost Driver Square feet. Units repaired Orders Product A1 2,800 3,840 8,800 Product B2
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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