A Company Has Two Products: a and B

question 14

Multiple Choice

A company has two products: A and B. 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 A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product A under activity-based costing?

• A) $3.00
• B) $2.00
• C) $10.28
• D) $15.00
• E) $2.33

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Definitions:

Explosives

A rephrased definition: Chemical compounds or mixtures that release a large amount of energy in a very short time through blasts or combustion.

Carbon Dioxide

A colorless, odorless gas with the formula CO2, produced by burning carbon and organic compounds and by respiration.

Organic Material

Matter obtained from living organisms, typically consisting of compounds like carbohydrates, proteins, lipids, and nucleic acids.

Blast Wave

A high-energy shock wave resulting from an explosion, characterized by an abrupt increase in pressure and velocity of the surrounding medium.