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dalvyx [7]
3 years ago
7

A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted c

ost and activity for each of its three activity cost pools: Budgeted Activity Activity Cost Pool Budgeted Cost Product A1 Product B2 Activity 1 $ 48,000 1,200 4,800 Activity 2 $ 63,000 2,240 4,760 Activity 3 $ 80,000 7,200 800 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 A1 under activity-based costing?
Business
1 answer:
Mila [183]3 years ago
4 0

Answer:

$4.00

Explanation:

To calculate the approximate overhead cost per unit of product A1 under activity - based costing we have it as

Activity 1 allocated to Product B2 line we have as

$48,000 × 4,800/6,000

= $38,400

Activity 2 allocated to Product B2 line we have it as

= $63,000 × 4,760/7,000

= $42,840

Activity 3 allocated to Product B2 line we have it as

=$80,000 × 800/8,000

= $8,000

Total overhead allocated to Product B2 = $89,240

Overhead per unit of Product B2: $89,240/22,310 = $4.00

As our overhead unit of product

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Answer:

The correct option is;

B. Companies use GAAP when preparing financial statements

Explanation:

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Oscar has negotiated a lease for his sporting goods store in which he is required to pay $2,500 per month in rent. Oscar pays hi
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Answer:

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Explanation:

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In the given question,

Monthly rent is $2,500 which is fixed so, it would be considered as fixed cost

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