Parrish Company Parrish Company Uses Activity-Based Costing

question 118

Multiple Choice

Parrish Company Parrish Company uses activity-based costing. The company produces two products: IPods and MP3 players. The annual production and sales volume of IPods is 8,000 units and of MP3 players is 6,000 units. There are three activity cost pools with the following expected activities and estimated total costs:
Refer to Parrish Company. Using ABC, the cost per unit of IPods is approximately:

• A) $ 2.40
• B) $ 3.90
• C) $ 6.60
• D) $10.59

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Definitions:

Stress

A physical or emotional response to demanding circumstances, leading to a feeling of strain or pressure.

Daily Hassles

Routine challenges of day-to-day life that can contribute to stress, such as traffic, work deadlines, and household chores.

Small But

Referring to something that is minor in size or amount yet holds significance or importance.

Annoying Everyday

No standard definition, potentially describing daily nuisances.