Matt Company uses activity-based costing. The company has two products: A and B.
ID: 2503281 • 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 11,000 units and of Product B is 9,500 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.)
Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 11,000 units and of Product B is 9,500 units. There are three activity cost pools, with total cost and total activity as follows:
Explanation / Answer
Cost /Total
34040/740 = $46
38150/1090 = $35
120,655/4090 = $29.5
Cost of allocated to A = ( 210*46 + 820*35 + 840*29.5) = $ 63,150
cost per unit = 63150/11000 = $ 5.74
ans is D) $5.74