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Reference: 05-04
Monson Company Has Two Products: G and P

question 12

Multiple Choice

Reference: 05-04
Monson Company has two products: G and P. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools:  Activity  Expected Activity  Cost Pool  Estimated Ovhd.  Cost  Product G  Product P  Total  Activity 1 $30,000200400600 Activity 2 $24,0006009001,500 Activity 3 $80,0004003,6004,000\begin{array} { | l | l | l | l | l | } \hline \text { Activity } & & { \text { Expected Activity } } \\\hline \text { Cost Pool } & \begin{array} { l } \text { Estimated Ovhd. } \\\text { Cost }\end{array} & \text { Product G } & \text { Product P } & \text { Total } \\\hline \text { Activity 1 } & \$ 30,000 & 200 & 400 & 600 \\\hline \text { Activity 2 } & \$ 24,000 & 600 & 900 & 1,500 \\\hline \text { Activity 3 } & \$ 80,000 & 400 & 3,600 & 4,000 \\\hline\end{array} The annual production and sales of Product G is 10,640 units. The annual production and sales of Product P is
26,600.
-The overhead cost per unit of Product P under activity-based costing is closest to:

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Definitions:

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An educational method where two signals are consistently associated together, leading to a reaction initially triggered by the second signal but ultimately provoked by just the first signal.

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Animals most active during the day (e.g., pigeons). Compare with crepuscular animals and nocturnal animals.

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