Answer:
Overhead per unit of Product B2 = $4.46
Explanation:
We know,
Allocation overhead to product line under A B C costing = Total overhead cost of specific product line/total number of products sold.
For each activity, the allocated overhead cost to product B2 = Total budgeted cost × [Product B2/(Product A1 + Product B2 of that activity)]
Activity 1 allocated to Product B2 line: $56,000 × 5,600/7,600 = $41,263
Activity 2 allocated to Product B2 line: $71,000 × 5,560/8,600 = $45,902
Activity 3 allocated to Product B2 line: $96,000 × 1,600/9,600 = $16,000
Total overhead allocated to Product B2 = $103,165
Overhead per unit of Product B2: $103,165/23,110 = $4.46
