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Reference: 05-03
Arthur Company Has Two Products: S and D

question 51

Multiple Choice

Reference: 05-03
Arthur Company has two products: S and D. 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 S  Product D  Total  Activity 1 $20,000100400500 Activity 2 $14,600500250750 Activity 3 $90,0003002,7003,000\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 S } & \text { Product D } & \text { Total } \\\hline \text { Activity 1 } & \$ 20,000 & 100 & 400 & 500 \\\hline \text { Activity 2 } & \$ 14,600 & 500 & 250 & 750 \\\hline \text { Activity 3 } & \$ 90,000 & 300 & 2,700 & 3,000 \\\hline\end{array} The annual production and sales of Product S is 4,547 units. The annual production and sales of Product D is
7,913.
-The overhead cost per unit of Product S under activity-based costing is closest to:

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Definitions:

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