Matt Company uses activity-based costing. The company has two products: A and B.
ID: 2481303 • Letter: M
Question
Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 9,000 units and of Product B is 8,000 units. There are three activity cost pools, with total cost and total activity as follows:
Total Activity
The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.)
$6.66 per units
$5.26 per units
$2.56 per units
$11.57 per units
Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 9,000 units and of Product B is 8,000 units. There are three activity cost pools, with total cost and total activity as follows:
Explanation / Answer
The activity-based costing cost per unit of Product A is closest to : $ 6.66 per Units
Working as below
Product A Product B Total Activity 1 7,380 23,370 30,750 Activity 2 29,160 7,560 36,720 Activity 3 23,400 94,380 117,780 Total Cost 59,940 125,310 185,250 Total Units product & Sales 9,000 8,000 Per unit Cost 6.66 15.66