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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text: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
Product A1
2,800
3,840
8,800
Activity
Activity 1
Activity 2
Activity 3
Budgeted Cost
$ 64,000
$ 79,000
$ 112,000
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?
Multiple Choice
O
O
O
O
$6.96
$7.75
$10.00
$13.61
Activity Cost Driver
Square feet
Units repaired
Orders
$4.93
Product B2
6,400
6,360
2,400
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