Bridget Company Uses Activity-Based Costing $\quad$ $\quad$ $\quad$

question 51

Multiple Choice

Bridget Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,000 units and of Product B is 3,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows:
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Expected Activity }$$\begin{array} { l | r | r | r | r | } \hline \begin{array} { l } \text { Activity Cost } \\\text { Pool }\end{array} & \text { Estimated Cost } & \text { Product A } & \text { Product B } & \text { Total } \\\hline \text { Activity 1 } & \$ 9,000 & 400 & 350 & 750 \\\hline \text { Activity 2 } & 12,000 & 100 & 400 & 500 \\\hline \text { Activity 3 } & 48,000 & 400 & 1,200 & 1,600 \\\hline\end{array}$

-The cost per unit of Product A under activity-based costing is closest to which of the following?

• A) $6.00.
• B) $8.63.
• C) $9.60.
• D) $13.80.

---

Definitions:

Prosocial Behavior

Actions intended to benefit others, including helping, sharing, and comforting.

Antisocial Behavior

Behavior that either damages interpersonal relationships or is culturally undesirable

Rule Of Law

A principle that governs a society where laws are publicly promulgated, equally enforced, and independently adjudicated, and are consistent with international human rights principles.

Effective

Capable of producing intended or desired results, often used to describe techniques, policies, or actions that achieve their objectives efficiently.