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

question 112

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 B under activity-based costing is closest to which of the following?

• A) $24.10.
• B) $16.60.
• C) $35.38.
• D) $31.90.

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Definitions:

Reliability

The consistency of a test, assessment, or measurement tool to produce the same results under the same conditions over time.

Reliability

The consistency and dependability of a process, test, or system in performing and producing the same results under the same conditions.

Measures

Quantifiable indicators used to assess the performance, efficiency, or condition of a process, system, or project.

Developmental Purposes

The use of processes, activities, or strategies aimed at facilitating growth, skill acquisition, or improved performance for the benefit of an individual or organization.