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:

Installed Version

The specific iteration of a software program currently set up and operational on a computer or device.

Word Processing Program

A software application used to create, edit, format, and print text documents.

Temporary Storage

Memory or space in a computer or device used for storing data temporarily during processing tasks.