A company has two products: A1 and 82. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activities: Activity Activity 1 Activity 2 Activity 3 Budgeted Cost Activity Cost Driver $ 48,000 $ 63,000 $ 80,000 Square feet Units repaired Orders Budgeted Activity Product A1 Product B2 1,200 2,240 7,200 4,800 4,760 800 Annual production and sales level of Product A1 is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing?

A company has two products: A1 and 82. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activities: Activity Activity 1 Activity 2 Activity 3 Budgeted Cost Activity Cost Driver $ 48,000 $ 63,000 $ 80,000 Square feet Units repaired Orders Budgeted Activity Product A1 Product B2 1,200 2,240 7,200 4,800 4,760 800 Annual production and sales level of Product A1 is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 11PA: Lampierre makes brass and gold frames. The company computed this information to decide whether to...

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