The Unit Product Cost of Product G2 Under Activity-Based Costing

question 135

Multiple Choice

The unit product cost of Product G2 under activity-based costing is closest to:

• A)$1,202.79 per unit
• B)$1,217.73 per unit
• C)$808.83 per unit
• D)$1,302.28 per unit

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Definitions:

Lift Axles

Lift axles are additional axles on vehicles that can be lowered to the ground to support increased weight or raised to minimize wear when not needed.

Tag Axles

Additional axles positioned behind the drive axles of heavy trucks or trailers to support more weight and improve stability.

Interaxle Differential

A differential located between the axles of a vehicle, allowing for differences in wheel speed on the same axle.

Differential Pinions

Small gears within a differential that engage with the ring gear to allow for the difference in wheel speed on a vehicle when turning.