Matt Company Uses Activity-Based Costing

question 28

Multiple Choice

Matt Company uses activity-based costing.The company has two products: A andB.The annual production and sales of Product A are 8,000 units and of Product B are 6,000 units.There are three activity cost pools,with estimated total cost and expected activity as follows: The cost per unit of Product A under activity-based costing is closest to:

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

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Definitions:

Rousseau

Jean-Jacques Rousseau, an 18th-century philosopher from Geneva, known for his influential works on political philosophy, education, and Enlightenment ideas on individual freedom and social contract.

Ideal Education

An educational framework that aims to nurture the intellectual, physical, moral, and emotional growth of individuals, preparing them for the challenges of the real world through a well-rounded curriculum.

Social Contract

A theory in political philosophy suggesting that people consent, either implicitly or explicitly, to surrender some freedoms to an authority in exchange for protection of natural rights and maintaining social order.