Answer:The activity-based costing cost per unit of Product A=$9.21
Explanation:
Product A Product B
Units Produced 8000 units 6000 units
Activity Cost Pool Total Cost Product A Product B Total Activity
Activity 1 $26,400 170 380 550
Activity 2 $54,365 950 360 1,310
Activity 3 $136,880 900 3,820 4,720
Activity−basedcost for Poduct A
Activity−basedcost for Activity1= total Cost/total no. of activityx activity for particular product which is product A
=26,400/550 x 170= 8160
Activity−basedcost for Activity2= total Cost/total no. of activityx activity for particular product which is product A
=54,365/1310 x 950=39,425
Activity−basedcost for Activity3= total Cost/total no. of activityx activity for particular product which is product A
=136,880/4720 x 900=26100
Total activity based cost for Product A = $8,160 + $39,425 +$26,100=$73,685
The activity-based costing cost per unit of Product A = Total activity based cost for Product A/ Units Produced for product A=$73,685/8000=$9.21
