Breccia is currently using activity-based costing. Breccia sales two products: l

Question

Breccia is currently using activity-based costing. Breccia sales two products: laptops and tablets. Every year Breccia sells 500 laptops and 250 tablets. Breccia uses three activities cost pools to apply costs to each product. The projected costs and projected activity for the products is: Expected Activity Activity Cost Pool Projecte d Cost Laptops Tablets Total Activity A ................. $21,450 750 350 1,100 Activity B ................. $16,250 850 400 1,250 Activity C ................. $15,045 85 210 295 . What is the cost per unit of a tablet What is the total cost per unit of a laptop?

Explanation / Answer

Calculate cost per unit :

Laptop Tablets Activity A 14625 6825 Activity B 11050 5200 Activity C 4335 10710 Total cost 30010 22735 Unit 500 250 Cost per unti 60.02 90.94

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