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

question 115

Multiple Choice

Abel Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 400 units. There are three activity cost pools, with estimated costs and expected activity as follows:
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\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 } & \$ 16,660 & 600 & 100 & 700 \\\hline \text { Activity 2 } & 18,450 & 1,100 & 700 & 1,800 \\\hline \text { Activity 3 } & 9,731 & 60 & 160 & 220 \\\hline\end{array}$

-The cost per unit of Product B is closest to which of the following?

• A) $17.69.
• B) $41.58.
• C) $74.73.
• D) $81.53.

---

Definitions:

Paraphrasing

The act of rewording or rewriting text or speech to achieve clearer understanding, often to simplify or clarify the original message.

Critic's Emotions

Critic's emotions encompass the spectrum of emotional responses or feelings expressed by critics or reviewers towards a work of art, entertainment, or literature.

Unhappy Client

A customer who is dissatisfied with the service or product provided by a business, leading to complaints or negative feedback.

Delayed Deliveries

Instances when products, messages, or goods are not delivered within the expected or promised time frame.