A Company Has Two Products: A1 and B2

question 110

Multiple Choice

A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Annual production and sales level of Product A1 is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the approximate overhead cost per unit of Product A1 under activity-based costing?

• A) $8.00
• B) $9.00
• C) $10.00
• D) $12.00
• E) $4.00

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Definitions:

Basement Membrane

A thin, dense layer of extracellular matrix that separates epithelial or endothelial cells from underlying connective tissue, playing key roles in tissue regeneration, filtration, and cell signaling.

Epithelial Tissue

A type of body tissue that lines the cavities and surfaces of structures throughout the body, serving as a barrier and protective layer.

Connective Tissue

Bodily tissue whose function is to uphold, link, or demarcate distinct tissues and organs.

Less Elastic

Referring to materials or tissues that have a decreased ability to resume their normal shape after being stretched or compressed.