Annika Company Uses Activity-Based Costing

question 163

Multiple Choice

Annika Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three activity cost pools, with total cost and activity as follows: The activity-based costing cost per unit of Product A is closest to:

• A) $20.40
• B) $10.00
• C) $18.15
• D) $17.00

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Definitions:

Federal Question

A legal issue involving the interpretation of the U.S. Constitution, federal laws, or treaties, which gives federal courts jurisdiction.

Amount in Controversy

The monetary threshold or total value of damages being sought or contested in a legal case, which can determine the jurisdiction or venue.

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